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 23% 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) $390,000 $ 585,000 Annual revenues and costs: Sales revenues $420,000 $ 500,000 Variable expenses $190,000 $ 222.000 Depreciation expense $ 78,000 $ 117,000 Fixed out-of-pocket operating costs $ 90,000 $ 70,000 The company's discount rate is 21%. Use Excel or a financial calculator to solve any time value of money problems. Product A Product B Payback period years years 2. Calculate the net present value for each product. (Round answers to the nearest dollar.) Product A Product B Net present value 3. Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product Product B Project profitability index