Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a ve- 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 yea rs. 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) 5 388,800 5 5?5,800 Annual revenues and costs: Sales- revenues 5 418,800 5 498,800 Variable expenses 5 186,800 5 218,800 Depreciation expense 5 785,800 5 115,800 Fixed outofpocket operating costs 5 89,800 5 ?8,800 ' The company's discount rate is 20%. Click here to View Exhibit 123-1 and Exhibit 123-2. 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 project protability index for each product. 5. Calculate the simple rate of return for each product. 6a. For each measure, identify whether Product A or Product Bis preferred. 6b. Based on the simple rate of return, Lou Barlow would likely