Harrys Seafoodis considering the addition of a fish hatchery. Construction of the facility is estimated to cost $1,100,000 and will be depreciated over 10 years using the straight-line method. The hatchery is expected to have no estimated residual value. Harrys Seafood has a required rate of return of 12%. Incremental net income related to each year of the investment is as follows:

1- Calculate the internal rate of return of the investment to the nearest percent. (Round answer to 1 decimal place, e.g. 15.5%.)

2- Calculate the payback period of the investment. (Round answer to 3 decimal places, e.g. 15.253.)

Revenue $450,000 Expenses: \begin{tabular}{crr} Material cost & $60,000 & \\ \multicolumn{1}{c}{ Labor } & 100,000 & \\ Depreciation & 110,000 & \\ Other & 10,000 & 280,000 \\ \hline Income before taxes & & 170,000 \\ Income tax expense at 40% & & 68,000 \\ \hline Net income & & $102,000 \\ \hline \end{tabular}