Chapter 13 Hw Saved Help Save & Exit Submit Check my work 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: ProductAProduct B points Initial investment Cost of cquipment zero salvage value) Annual revenues and costs: Sales revenues Variable expenaea Depreciation expenae Fixed out-of-pocket operating coste S370, 000 570, Da0 Skipped $400,000 480,000 $180,000 214,000 $ 74,000 114,D00 $ 8,0DO 68,DaO eBook The company's discount rate is 20%. Click here to view Exhibit 13B-1 and Exhibit 13B-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. 6b. Based on the simple rate of return, Lou Barlow would likely