Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture...

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Accounting

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 21% each of the last three years. He computed the following cost and revenue estimates for each product:
\table[[Initial investment:,Product A,Product B,],[Cost of equipment (zero salvage value),$210,000,$420,000,],[Annual revenues and costs:,,,],[Sales revenues,,290,000,$390,000
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