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 18% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Products $ 170,000 $ 380,000 Initial investments Cont of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating coats $ 250,000 $ 120,000 34,000 $ 70,000 $ 350,000 $ 170,000 $ 76,000 $ 50,000 The company's discount rate is 16%. Click here to view Exhibit 78-1 and Exhibit 78-2. 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. Reg 5 Reg 6A Reg 68 Reg 4 Reg 1 Reg 2 Reg 3 Calculate the payback period for each product. (Round your answers to 2 decimal places.)