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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 410,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $200,000 $280,000 $132,000 $ 40,000 $ 73,000 $ 380,000 $ 182,000 $ 82,000 $ 53,000 The company's discount rate is 18%. Use Excel or a financial calculator to solve any time value of money problems. Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A years Product B years Payback period 2. Calculate the net present value for each product. (Round answers to the nearest dollar.) Product A Product B Net present value