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 25% 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) $ 340,000 $ 540,000

Annual revenues and costs: Sales revenues $ 390,000 $ 490,000

Variable expenses $ 176,000 $ 226,000

Depreciation expense $ 68,000 $ 108,000

Fixed out-of-pocket operating costs $ 84,000 $ 64,000

discount rate is 18%

1. calculate the internal rate of return for each product (A & B) in % ... round answer to 1 decimal place