Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (RO), which has exceeded 20% each of the last three years. He has computed the cost and revenue estimates for eoch product as follows: The company's discount rate is 14%. Click here to view Exblbit 148.1 and Exhibit 148:2, to determine the appropriate discount foctor using tables Requlred: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product 3. Calculate the internal fate of retum for each product. 4. Calculate the profitabilty index for each product 5. Caiculate 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 retum, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.123 should considered as 12.3%. Complete this question by entering your answers in the tabs below. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place I.e, 0.123 shoul considered as 12.3%.) Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. Comprete this question by entering your answers in the tabs below. Based on the simple rate of return, which of the two products should Lou's division accept? EXHIBIT 14E-1 Fresent Value of 31(1+r)21 14B-2 Present Value of an Annuity of S1 in Arrears: p1[1(I+r)21]