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Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His

Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 25% each of the last three years. He computed the following cost and revenue estimates for each product:
\table[[Initial investment:,Product A,Product B],[Cost of equipment (zero salvage value),$340,000,$540,000Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 25% each of the last three years. He computed the following cost and revenue estimates for each product:
\table[[Initial investment:,Product A,Product B],[Cost of equipment (zero salvage value),$340,000,$540,000
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