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 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Product A Product B. $350,000 $ 550,000 $390,000 $470,000 Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 87,000 $178,000 $ 70,000 $210,000 $110,000 $ 67,000 The company's discount rate is 20%. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years Calculate the net present value for each product. (Round your final answers to the nearest whole dollar ama Product A Product B Net present value Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0. considered as 12.3%.) Product A Product B Internal rate of return % % Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Profitability index Product A Product B Reg.-3 Reg.-5 Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.12 considered as 12.3%.) Product A Product B Simple rate of return % % For each measure, identify whether Product A or Product B is preferred. Net Present Value Internal Rate Simple Rate of Return Profitability Index Payback Period of Return