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 (RO), which has exceeded 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows Product Products $ 390,000 5 585,000 Initial investments Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $420,000 $ 105,000 $ 78,000 $ 90,000 550.000 $ 222,000 $ 117,000 5 70,000 The company's discount rate is 21% Click here to view Exhibit 128-1 and Exhibit 12B-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 retum for each product, 6a. For each measure, identify whether Product A or Product B is preferred 6b. Based on the simple rate of return, Lou Barlow would likely Click here to view Exhibit 12B-1 and Exhibit 128-2. 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 6a. 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. Reg 1 Req 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years