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 19% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B Initial investment: $400,000 Cost of equipment (zero Annual revenues and Sales revenues Variable expenses Depreciation expense $190,000 salvage value) costs: $270,000 $370,000 $128,000 $178,000 38,000 $80,000 Fixed out-of-pocket $ 72,000 $52,000 operating costs The company's discount rate is 17%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback eriod yea yea Calculate the net present value for each product. (Use the appropriate table to determine the discount factor(s).) 2. uct Net present alue 3. Calculate the project profitability index for each product. (Use the appropriate table to determine the discount factor(s). Round your answers to 2 decimal places.) uct Pro Project profitability index 4. 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% and use the appropriate table to determine the discount factor(s).) Simple rate of return