Lou Barlow, a divisional manager for Sage Company, hos 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 17% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product coat of equipment (to salvade valde $ 180,000 $390,000 Annual events and costs $ 260,000 160,000 Variable expenses $ 124,000 174,000 Depreciation expense $36,000 $70,000 Find out-of-pocket operating costs "71,000 $50,000 Initial investment: Sales tevens cer The company's discount rate is 15% 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 60. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely