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$$s return on investment $($ROI$),$ which has exceeded $24\%$ each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product AProduct BInitial investment: Cost of equipment $($zero salvage value$)$$ $326,050$$ $515,000$Annual revenues and costs: Sales revenues$ $370,000$$ $470,000$Variable expenses$ $168,000$$ $218,000$Depreciation expense$ $66,000$$ $103,000$Fixed out$-$of$-$pocket operating costs$ $82,000$$ $68,000$ The company$$s discount rate is $15\%.$ Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor using tables. Required:$1.$ Calculate the payback period for each product$\mathrm{.}2.$ Calculate the net present value for each product$\mathrm{.}3.$ Calculate the internal rate of return for each product$\mathrm{.}4.$ Calculate the profitability index for each product$\mathrm{.}5.$ Calculate the simple rate of return for each product$\mathrm{.}6$a$.$ For each measure, identify whether Product A or Product B is preferred$\mathrm{.}6$b$.$ Based on the simple rate of return, which of the two products should Lou$$s division accept?