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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues $220,000 410,000 s 280,000 380,000 s 130,000 $ 182,000 $44,000 $82,000 $73,000 60,000 Depreciation expense Fixed out-of-pocket operating costs The company's discount rate is 14%. Click here to view Exhibit 138-1 and Exhibit 138-2, 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 Complete this question by entering your answers in the tabs below. Req 6A Req 68 Req 5 Req 2 Req 4 Req 1 Req 3 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product B Product A ba. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: References Complete this question by entering your answers in the tabs below. Req 2 Req 4 Req 5 Req 6B Req 6A Req 1 Req 3 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amous Product A Product Net present value Req3 K Req 2 7of 7111 Req 3 K Req 4 Next > 7of 7