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 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B Initial Investment Cost of equipment (zero salvage $300.000 $500,000 value) Annual revenues and costs: Sales revenues $350.000 $450.000 Variable expenses $ 160.000 $ 210.000 Depreciation expense $ 44.000 $86.000 Fixed out-of-pocket operating $ 80.000 costs $61.000 The company's discount rate is 16% 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.) Product Product B Payback period years years Calculate the net present value for each product. (Round discount factors) to 3 decimal places.) Product Product B Net present value 3. Calculate the Internal rate of return for each product. (Round percentage answer to 1 decimal place. Le. 0.1234 should be considered as 12.3% and Round discount factor(s) to 3 decimal places.) Product A Product B 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 Product B Project profitability index 5. Calculate the simple rate of return for each product (Round percentage answer to 1 decimal place. Le. 0.1234 should be considered as 12.3%) Product Product B Simple rate of return 6a. For each measure, Identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Return 66. Based on the simple rate of return, Lou Barlow would likely Accept Product A Accept Product B Reject both products