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 25% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $340,000 5 525,000 Initial Investments Cost of equipent (zero salvage walue) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs 5380,000 488,000 5172,000 $ 225,000 $ 68,000 $ 195,000 $ 83,000 566,000 The company's discount rate is 17% Click here to view Exhibit 148.1 and Exhibit. 148-2. 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 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, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg4 Reg 5 Reg 6 Reg 68 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product Payback period years years