Problem 12-23 Comprehensive Problem [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6) Lou Barlow, a divisional manager for Sage Company, has an opportunity 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 to manufacture and sell one of two new products for a five- Initial investment : Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs 290,800 $ 490,000 348,880 448,000 154,90 286,600 58,009 98,000 79,0ee 59,090 The company's discount rate is 15% Cic k here to view Exhibit 123.1 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 b Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Reg 4 Req 5 Req 6ARe68 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Payback period