Problem $12-23($Algo$)$ Comprehensive Problem $[$ LO$12-1,$ LO$12-2,$ LO$12-3,$ LO$12-5,$ LO$12-6]$

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 $20\%$ each of the last three years. He has computed the cost and revenue estimates for each product as follows:

$\backslash$table$[[,$Product A$,$Product B$],[$Initial investment:,,$],[$Cost of equipment $($zero salvage value$),$$$218,150,$$$410,000$