Problem 12:23 Comprehensive Problem (LO12-1, LO12-2, L012-3, LO12-5, LO12-6] ou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five- year period annual pay raises are determined by his division's return on investment (ROI), which has exceeded 20% each of the last three years he has computed the cost and revenue estimates for each product as follows: Product 3 $ 460,000 Initial investment cost of equat (tero salvage value Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out of pocket operating costs $300,000 135.000 50.000 75,000 $400,000 $ 190.000 92,000 $ 55,000 The company's discount rate is 18% Click here to view Exhibit 120.1 and Exhib120.2to 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 6. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 5 Reg 6A Reg 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product Product B Payback period years