Lou Barlow, a divisional manager for Sage Company, has an opportunit - Lou Barlow a divisional manager for Sage Company has an opportunity to

# Lou Barlow, a divisional manager for Sage Company, has an opportunit

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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 divisions return on investment (ROI), which has exceeded 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows:����The companys discount rate is 19%.��Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor using tables.��Required:1. Calculate the payback period for each product. (Round your answers to 2 decimal places.)2. Calculate the net present value for each product. (Round discount factor(s) to 3 decimal places.)3. Calculate the internal rate of return for each product. (Round percentage answers to 1 decimal place. i.e. 0.1234 should be considered as 12.3% and round discount factor(s) to 3 decimal places.)4. Calculate the project profitability index for each product.