Problem 8-23 Comprehensive Problem LO8-1, LO8-2, L08-3, Lo8-5, Lo8-6) manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year Lou Barkow, a divisional period. His annual pay raises are determined by his division's return on investment (ROn. which has exceede years. He has computed the cost and revenue estimates for each product as follows Initial investment Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues $290.000 s 500.000 $ 450,000 5 210,000 Variable expenses Depreciation expense Fixed out-of-pocket operating costs $350,000 $160,000 S 58.000 S 80,000 S 100,000 S 60,000 The company's discount rate is 16%. Click here to view Exhibit 88-1 and Exhibit RB-2, to determine the appropriate discount factor using tables Required 1. Calculate the payback period for each product (Round your answers to 2 decimal places.) Product A Product B Payback period ayear years