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 retum 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% : Chick here to view Exthit 128 - 1 and Exhibir 1282 to determine the appropriate discount foctor 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 retum for each product. 6b Based on the simple rate of return, which of the two products should Lou's division accept? EXITETT 12B-1 EXIIIBIT 12B2