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 25% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product B Inicial investet: Cost of equipment (zero salvage Value) +370,000 $530,000 Annual revenues and costs: Sales revenues $ 400,000 # 510,000 Variable expenses 4180,000 250,000 Depreciation expense 574,000 5 106,000 Fixed out-of-pocket operating costs $ 85,000 672.000 The company's discount rate is 19% Click here to view Exhibit 13B 1 and Exhibit 138-2, 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 profitability index for each product 5 Calculate the simple rate of return for each product 60. For each measure, identify whether Product A or Product is preferred 66. Based on the simple rate of return, Lou Barlow would likely