88200o Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of tw new products for a five-year period. His annual pay raises are determined by his division's return investment (ROI), which has exceeded 18% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product B Product A $170,000$380,000 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$350,000 $120,000$ 170,000 34,000S 76,000 S 70,000 50,000 The company's discount rate is 16%. Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Pybaesk period years years 2. Calculate the net present value for each product. (Use the appropriate table to determine the discount factor(s).) Product A Product B Net present value