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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B Tnitial investment: Cost of equipment (zero salvage value) Annual revenues and costs 210,000 S 420,000 Sales zevenues Variable expenses Depreciation expense Pixed out-of-pocket operating costs 290,000 390,000 138,000 186,000 $ 42,000 84,000 74,000 54,000 The company's discount rate is 19%. Click here to view Exhibit 13B.1 and Exhibit 138-2. to determine the appropriate discount factor using tables Required 1. Calculate the payback period for each product. 2. Calculate the net present value for each product