Problem 14-23 (Algo) Comprehensive Problem [LO14-1, LO14-2, LO14-3, LO14-5, LO14-6] Lou Batlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. Hs annual pay raises are determined by his division's return on investment (ROD), which has exceeded 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: The company's discoum rate is 14%. Click here to view Exhibit tate.l and Exnibit 148.2, to determine the appropriate discount factor using tables. Requited: 1. Calculate the payback period fot each product. 2. Calculate the net present value for each product. 3. Calculate the intemal rate of return for each peoduct. 4. Caiculate the profitablity index for eoch product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product 8 is prefemed, 6 b. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Cakulate the payback period for each product. (Round your answers to 2 decims places.)