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 divi-sion's 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 A

initial investment $170,000

the sales revenue is $250,000

variable expenses is $120,000

depreciation expense $34,000

fixed out-of-pocket expense $70,000

Product B

initial investment $380,000

the sales revenue is $350,000

variable expenses is $170,000

depreciation expense $76,000

fixed out-of-pocket expense $56,000

CALCULATE the internal rate of return for each product.