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 23% 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 21%. Click here to view Exhibit 14B-1 and Exhibit 14B-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. 6b. Based on the simple rate of return, which of the two products should Lou's division accept? Calculate the payback period for each product. (Round your answers to 2 decimal places.) Calculate the net present value for each product. (Round your final answers to the nearest whole do Calculate the internal rate of return for each product. (Round your percentage answers to 1 decima considered as 12.3%. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal considered as 12.3%.) Eor 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