Problem 11-19A Comprehensive Problem [LO11-1, LO 11-2, LO 11-3, L011-4] 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 22% 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) $380,000 575,000 Annual revenues and costs: Sales revenues $410,000 490,000 $186,000 218,000 Variable expenses 76,000 115,000 Depreciation expense 89,000 69,000 Fixed out-of-pocket operating costs The company's discount rate is 20%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) 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. (Use the appropriate table to determine the discount factor(s)) Product A Product B Net present value