Please help answer the 2 end of chapter questions.

Hospitality Industry Managerial Accounting Chapter 13 Problem 9 Walter Adam is the manager of the Springs Caf. The caf has decided to add pizza to its menu. The estimated equipment costs, incremental revenues from pizza sales, and incremental cash expenses related to the sales are as follows: 1. cost of equipment $15,000 2. Incremental annual revenues (for five years) $80,000. 3. Incremental annual expenses (for five years) $70,000. Other information 1. Assume the estimated life of the equipment is five years and that there will be no salvage value. Further assume the depreciation method used in straight line. 2. Assume the relevant discount rate for NVP purposes is eight percent. Required: 1. Determine the ARR 2. Determine the payback period 3. Determine the NPV Problem 10 "Carol Rollins, owner of Carollins, is considering buying an energy efficient oven for her restaurant. However, she is concerned that the cost savings adequately offset the purchase price; she would prefer the project to have no more than a 2.5 year payback period. She is basing her decision on the following information: Project Cost: $23,500 Cost Savings Years 1 2 3 4 5 Energy $2000 $2,500 $3,000 $3,000 $3,000 Maintenance 3,000 3,000 2,000 1,000 1,000 Total $5,000 $5,500 5,500 $4,000 $4,000 Required: 1. Determine if Ms. Rollins should invest in this over. 2. If there was an estimated cash savings of $4,500 for each year, would this be purchased, based on the payback criterion