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. He has computed the cost and revenue estimates for each product as follows ProductAProduct 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 390,000 585,000 420,000 500,000 $ 185,000 222,000 $ 78,000 117,000 $ 90,000 70,000 The company's discount rate is 21% Ignore income taxes. Note that Excel or a financial calculator must be used to calculate items 2- 4 Requirec 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. 6a. For each measure, identify whether Product A or Product B is preferred Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4 Req 6A Calculate the payback period for each product. (Round your answers to 2 decimal places.)