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: Product Product B S380,000 $575.000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and cuests: Sales revenues Variable expenses Depreciation expense Fixed out of pocket operating costs $410,000 S188.000 S 78.000 S 89.000 $490.000 S 218.000 S 115.000 69.000 The company's discount rate is 20% Click here to view Exhibit 118-1 and Exhibit 118-2 to determine the appropriate discount factors) using Required: 1. Calculate the payback period for each product Round your answers to 2 decimal places.) Products yearst Product B years Payback period Calculate the not present value for each product. Use the appropriate table to determine the discount factore).) Product Product B Net present value 3. Calculate the project profitability index for each product Use the appropriate table to determine the discount factor(o). Round your answers to 2 decimal places) Product Product B Project profitability index 4. Calculate the simple rate of return for each product. Round percentage answer to 1 decimal place Le 0.1234 should be considered as 12.3% and use the appropriate table to determine the discount factor(s).) Product Product B Simple rate of return 5a. For each measure, identify whether Product A or Product is preferred Net Present Value Profitability Index Payback Period