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 A Product B Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreclatlon expense Flxed out-of-pocket operating costs S 310,000 S510,000 5 360,000 460,000 S 164,000 S 214,000 S 62,000 S102,000 S 81,000 S 65,000 The company's discount rate is 18%. Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor using tables. Required 1. Calculate the payback perlod for each produci 2. Calculate the net present value for each product. 3. Calculate the Internal rate of retum for each product 4. Calculate the project profitability index for each product. 5. Calculate the simple rate of retum 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