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 Initial investment: Cost of equipment (zero salvage value Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $260,000 470,000 $310,000 410,000 $144,000 194,000 52,000 94,000 $ 76,000 56,000 The company's discount rate is 18% Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables Required 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Answer is not complete Product A Product B Payback period 2.89 | years years Calculate the net present value for each product. (Use the appropriate table to determine the discount factor(s).) 2 Answer is not complete Product $21,430 Product Net present value