shows what is correct and incorrect for the work you have completed so far. f the work you have done so far is oorrect, you may not have pleted everything 550 points 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 retum on investment (RO), which has exoeeded 20%each of the last three years. He has computed the cost and revenue estimates for each product as folows: Product A Product B Initial investment Cost of equipment (zero salvage value) $200,000 $470,000 Annual revenues and costs: Sales revenues $310,000 $410,000 Variable expenses $144,000 194,000 Depreciation expense 40,000 82,000 Fixed out-ofpocket operating costs 76.000 58,000 3 The company's discount rate is 18%. Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor using Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Answer is complete and correct II Product A Product B Payback period 2 years 2.07 years 2 Calculate the net present value for each product (Round discount 3 decimal places. factor(s) to Answer is complete and correct Product A Product B Het cresent value s 21.430 v S 24.065