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 exceeded20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B Initial investment: Cost of equipment (zero salvage value $260,000 470,000 Annual revenues and costs: $310,000 410,000 Sales revenues Variable expenses $144,000 194,000 40,000 82,000 Depreciation expense 76,000 58,000 Fixed out-of-pocket operating costs The company's discount rate is 18%. 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. (Round your answers to 2 decimal places.) Product A Product B 289 years 297 Payback period years 2. Calculate the net present value for each product. (Round discount factor(s) to 3 decimal places.) Product A Product B 21,430 V Net present value 24,066