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 25% each of the last three years. He computed the following cost and revenue estimates for each product Initial investment Cost of equipment (zero salvage value) Annual revenues and costa Sales revenues, Variable expenses Depreciation expense Product A Product B $525,000 $340,000 $380,000 $172,000 $480,000 $225,000 $ 68,000 Fixed out-of-pocket operating costs $ 83,000 $ 105,000 5 66,000 The company's discount rate is 17% Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate each product's payback period.