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 23% 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) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs S390,000 $ 585,000 420,000 $190,000 78,000 90,000 $ 500,000 $ 222,000 $ 117,000 $ 70,000 e company's discount rate is 21% Click here to view Exhibit 8B-1 and Exhibit 88-2, to determine the appropriate discount factor using tables. Required Th 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years