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 20% 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 $260,000 $470,000 salvage value) Annual revenues and costs: Sales revenues $310,000 $410,000 $144,000 $194,000 Depreciation expense $ 52,000 $ 94,000 Fixed out-of-pocket operating $ 76,000 $ 58,000 costs The company's discount rate is 18%. Click here to view Exhibit784 and Exhibit 78 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 project profitability index for each product. 5. Calculate the simple rate of return for each product 68. For each measure, identify whether Product A or Product B is preferred 6b. Based on the simple rate of return. Lou Barlow would likely Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Reg 4 Req 5 Req 6A Req6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback years years Reg 2 > period