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 ralses are determined by his division's return on Investment (ROI), which has exceeded 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B 210000 $420,000 Initial Investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues $290,000 $ 136,000 $390,000 $186,000 Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 38,000 $ 74,000 $80,000 $54,000 The company's discount rate is 19%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables. Required: Calculate the payback period for each product (Round your answers to 2 decimal places.) Product A Product B Payback period Payback period years years Calculate the net present value for each product. (Round discount factor(s) to 3 decimal places.) Product A Product B Net present value 3. Calculate the Internal rate of return for each product. (Round percentage answer to 1 decimal place. le. 0.1234 should be considered as 12.3% and Round discount factor(s) to 3 decimal places.) Product A Product B Internal rate of return 4. Calculate the project profitability Index for each product (Round discount factor(s) to 3 decimal places. Round your answers to 2 decimal places.) Product A Product B Project profitability index 5. Calculate the simple rate of return for each product. (Round percentage answer to 1 decimal place. I.e. 0.1234 should be considered as 12.3%) Product Product B Simple rate of return 6a. For each measure, Identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Return 6b. Based on the simple rate of return, Lou Barlow would likely Accept Product A Accept Product B Reject both products