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 Product B $ 310,000 $ 510,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out of pocket operating costs 360.000 $ 164,000 $ 62,000 $ 81,000 $460.000 $ 214,000 $102,000 $ 65,000 The company's discount rate is 18%. Click here to view Exhibit:133.1 and Exhibit:130-2. 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 project profitability index for each product. 5. Calculate the simple rate of return for each product. 6a. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: 66. Based on the simple rate of return, Lou Barlow would likely: Answer is not complete. Complete this question by entering your answers in the tabs below. Regi Req2 Req3 Req4 Reqs Req6A Req6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years Req 2 > 6a. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: & Answer is not complete, Complete this question by entering your answers in the tabs below. Reg! Req2 Req3 Reg 4 Reg 5 Reg 6A Reg 6B Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value * Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req5 Reg 6 S Req6B Calculate the internal rate of return for each product. (Round your answers to decimal place le 0.123 should be considered as 12,3 ) Product Product A Internal rate of return Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req3 Req 4 Reg 5 Reg 6B Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) A Product Product B Project profitability index Answer is not complete. Complete this question by entering your answers in the tabs below. Req! Req2 Req3 Reg 4 Reqs Reg A Req6B For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Return Simple Rate of Return