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 18% each of the last three years. He has computed the cost and revenue estimates for each product as follows:

Product AProduct B Initial investment: Cost of equipment (zero salvage value)$170,000 $380,000 Annual revenues and costs: Sales revenues$250,000 $350,000 Variable expenses$120,000 $170,000 Depreciation expense$34,000 $76,000 Fixed out-of-pocket operating costs$70,000 $50,000

The companys discount rate is 16%.

Calculate the net present value for each product. (Round discount factor(s) to three decimal places.)