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Lou Barlow, a divisiona! manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five. year period.

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Lou Barlow, a divisiona! 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 17\% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor using tables Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the profitability index for each product 5. Caiculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, which of the two products should Lou's division accept

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