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 25% 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 $360,000 530,000 $400,000 $510,000 $180,000 $250,000 $ 72,000 106,000 $ 85,000 65,000 The company's discount rate is 19% Use Excel or a financial calculator to solve any time value of money problems Required 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years 2. Calculate the net present value for each product. (Round answers to the nearest dollar.) Product A Product B Net present value