Step 1 :Find the derivative of the function S(t) = 107 - 90e^(-0.4t) using the chain rule. The derivative is S'(t) = 36e^(-0.4t).
Step 2 :Calculate the rate of change after 1 year by substituting t=1 into the derivative. The rate of change is S'(1) = 36e^(-0.4*1) = \(\boxed{27.392}\) thousand items per year.
Step 3 :Calculate the rate of change after 5 years by substituting t=5 into the derivative. The rate of change is S'(5) = 36e^(-0.4*5) = \(\boxed{5.305}\) thousand items per year.
Step 4 :The rate of change of sales as time goes on is given by the derivative S'(t) = 36e^(-0.4t). As t increases, the value of e^(-0.4t) decreases, which means the overall value of S'(t) decreases. So, the rate of change of sales always decreases.
Step 5 :The rate of change of sales equals zero when S'(t) = 0. However, since S'(t) = 36e^(-0.4t), and e^(-0.4t) is always positive for any real number t, S'(t) can never be zero. So, the rate of change of sales never equals zero.