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 22% 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: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 340,000 $ 540,000 S 380,000 $170,000 $ $ 460,000 $ 206,000 $108,000 66,000 68,000 86,000 $ The company's discount rate is 20%. 13-02 Evaluate Click here to view Exhibit 13B-1 and Exhibit 13B-2, to detemrmine 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. 6a. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lu Barlow would likely: Complete this question by entering your answers in the tabs below. Req 68 Req 5 Req 6A Req 4 Req 3 Req 2 Req 1 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product B Product A years years Payback period Req 2> Reo 1