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 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product Initial Investment Cost of equipent (zero salvage value) $380.00 $ 575.000 Antual revenues and costs: $ 410,000 $490.000 Variable expenses $ 180,000 $ 215,000 Depreciation expense $ 76,000 $115.000 Theodoutofpocket operating costs $ 19,000 $70,000 The company's discount rate is 20% Click here to view Exhibit 128_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 66. Based on the simple rate of return, Lou Barlow would likely Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years 1 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value Calculate the internal rate of return for each product. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%) Product A Product B Internal rate of return Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product Product B Project profitability index Calculate the simple rate of return for each product. (Round your answer to 1 decimal place i.e. 0.123 should be considered Product A Product B Simple rate of return For each measure identify whether Product A or Product is preferred Net Present Profitability Payback Period Rate Simple Rate of Based on the simple rate of return, Lou Barlow would likely Accept Product A Accept Product B Reject both products