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Sharissa Williams, the sole proprietor of the Mobile Inn, is considering either adding rooms or or adding a food service operation to her lodging facility.

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Sharissa Williams, the sole proprietor of the Mobile Inn, is considering either adding rooms or or adding a food service operation to her lodging facility. The expected cost of each would be exist500,000. The related net cash inflows for the first ten years according to a feasibility study recently completed are as follows: Using the payback approach to capital budgeting, which project has the shortest payback? What is the NPV of each project? Assume a discount rate of 10 percent. Assume a zero value for the investment at the end of ten years

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