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 24% 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) $330,000 $515,000 Annual revenues and costs: $370,000 $470,000 Sales revenues $168,000 $218,000 Variable expenses 46,000 88,000 Depreciation expense 82,000 68,000 Fixed out-of-pocket operating costs The company's discount rate is 15% Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B years Payback period years Calculate the net present value for each product. (Round discount factor(s) to 3 decima places.) Product A Product B Net present value