Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five$-$

year perlod. HIs annual pay ralses 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 $17\%.$

Click here to vlew Exhiblt $14$B$-1$ and Exhiblt $14$B$-2,$ to determine the approprlate discount factor using tables.

Required:

Calculate the payback perlod 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.

Calculate the simple rate of return for each product.

$6$a$.$ 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.

Req $2$

Req $3$

Req $4$

Req $6A$

Req $6B$

Calculate the payback period for each product. $($Round your answers to $2$ decimal places.$)$