Lou Barlow, a divisional manager for Sage Company has an opportunity to manufacture and so one of two new products for at five year period His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 19 each of the last three years. He has computed the cost and revenue estimates for each product as follows Initial investment Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Faced out-of-pocket operating costs Product Product $190,000 $ 400,000 $270.000 $ 370,000 $128.000 $ 178000 $ 38 000 5 80.000 $ 72 000 $ 52.000 The company's discount rate is 17% Use Excel or a financial Calculator to solve any time value of money problems. Required: 1 Calculate the payback period for each product. (Round your answers to 2 decimal places) 2 Product A years Products years Payback period 2. Calcite the outset value for each woduct (Round answers to the nearest dollar Product Product Notre Calculate the proces for cochoud Hound your answers to decimales Product Product Prout prodex 4 Calculate the simple rate of robum for och product Round percentage wwer to decimal 0.1234 should be considered as 12.3%) Product Products Simplest of 5a. For each measure, identify whether Product A or Product B is proferred Net Present Profitability Value Index Payback Period 56. Based on the simple rate of return, Lou Barlow would likely O Accept Product A O Accept Product B O Reject both products