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2.00 points Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year

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2.00 points 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 20% each of the last three years he has computed the cost and revenue estimates for each product as follows Initial investment Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $250,000 460,000 $300,000 $400,000 $140,000 190,000 $ 39,000 81,000 $ 75,000 55,000 The company's discount rate is 18% Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor using tables Required: 1. Calculate the payback period for each product (Round your answers to 2 decimal places.) Product A Product EB Payback period years years

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