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 $19\%$ each of the

last three years. He has computed the cost and revenue estimates for each product as follows:

The company's discount rate is $16\%.$

Required $($Use Excel for $2-4)$:

Calculate the payback period for each product.

Calculate the net present value for each product.

Calculate the internal rate of return for each product.

Calculate the profitability index for each product.