Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one oftwo new products fora ve year period. His annual pay raises are determined by his division's return on investment {ROI}, which has exceeded 23% each ofthe 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) $ 318,888 5 518,888 Annual revenues and costs: Sales revenues $ 358,888 5 468,889 Variable expenses 35 154,888 5 214,880 Depreciation expense $ 52,888 5 182,888 Fixed outofpocket operating costs $ 81,888 $ 65,889 The company's discount rate is 18%. Click here to view Exhibit ?B1 and Exhibit ?B2, 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 protability index for each product. 5. Calculate the simple rate of return for each product