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Lou Barlow, a divisional manager for Sage company, opportunity to manufacture and sell of two new products for a five-year period. His annual pay raises

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Lou Barlow, a divisional manager for Sage company, opportunity to manufacture and sell of two new products for a five-year period. His annual pay raises are determined by on an investment (ROI), which has exceeded 22% each of the last three years. He has computed the cost revenue estimates for each product as follows: Product A Product B Initial investment: $570,000 Cost of equipment (zero salvage value) $370,000 Annual revenues and costs: $400,000 $480,000 Sales revenues $182,000. $214,000 Variable expenses 52,000 94,000 Depreciation expense 88,000 68,000 Fixed out-of-pocket operating costs The company's discount rate is 20%. Click here to view Exhibit 13B-1 and Exhibit 13B-2. to destmine the appropriate discount factor using tables

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