Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear 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: The company's discount rate is 19%. Click here to view Exhibit 12B-1 and Exhibit 12B-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 profitability index for each product. 5. Calculate the simple rate of return for each product. 6 a. For each measure, identify whether Product A or Product B is preferred. 6 b. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in Calculate the net present value for each product. (Round you \begin{tabular}{|c|c|c|} \hline & Product A & Product B \\ \hline Internal rate of return & % & % \\ \hline \end{tabular} Calculate the profitability index for each product. (Roun \begin{tabular}{|c|c|c|} \hline & Product A & Product B \\ \hline Simple rate of return & % & % \\ \hline \end{tabular} For each measure, identify whether Product A or Product B is preferred. Based on the simple rate of return, which of the two products should Lou's division accept? \begin{tabular}{|l|} \hline Accept Product A \\ \hline Accept Product B \\ \hline Reject both products \\ \hline \end{tabular} EXHIBIT 12B-1 Present Value of S1; (1+r)1 EXHIBIT 12B-2 Present Value of an Annuity of 51 in Arrears; 1/r(1(1/(1+r)n))