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 (RO), 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) $340,000 525,000 Annual revenues and costs: Sales revenues $380,000 $480,000 $172,000 222,000 Variable expenses s 47,000 89,000 83,000 s 66,000 Depreciation expense Fixed out-of-pocket operating costs The company's discount rate is 17%. click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables