I need help solving #3. Thank you!

Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $370,000 $570,000 $400,000 $ 480,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 214,000 $ 182,000 $ 52,000 $ 88,000 $ 94,000 $68,000 The company's discount rate is 20%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables. Required: Calculate the payback period for each product. (Round your answers to 2 decimal places.) 1. Product A 2.85 years Product B 2.88 years Payback period 2. Calculate the net present value for each product. (Round discount factor(s) to 3 decimal places.) ed Product A $ 18,830 Product B $ 22,218 Net present value 3. Calculate the internal rate of return for each product. (Round percentage answer to 1 decimal place. i.e. 0.1234 should be considered as 12.3% and Round discount factor(s) to 3 decimal places.) Product A 22.3 Product B 21.8 Internal rate of return % % 4. Calculate the project profitability index for each product. (Round discount factor(s) to 3 decimal places. Round your answers to 2 decimal places.) Product A 0.05 Product B 0.04 Project profitability index 5. Calculate the simple rate of return for each product. (Round percentage answer to 1 decimal place. i.e. 0.1234 should be considered as 12.3%.) Product A 21.1 % Product B 18.2 % Simple rate of return 6a. For each measure, identify whether Product A or Product B is preferred. Net Present Value Product B Profitability Index Product A Payback Period Product A Internal Rate of Return Product A 6b. Based on the simple rate of return, Lou Barlow would likely: Accept Product A Accept Product B Reject both products