Sharissa Williams, the sole proprietor of the Mobile Inn, is considering either adding rooms or adding a food service operation to her lodging facility. The expected cost of each would be $500,000. The related net cash inflows for the first ten years according to a feasibility study recently completed are as follows: Years Additional Rooms Food Service Operation 1 $80,000 $20,000 2 90,000 60,000 3 100,000 80,000 4 110,000 100,000 5 120,000 120,000 6 130,000 140,000 7 140,000 160,000 8 150,000 180,000 9 160,000 200,000 10 170,000 220,000 Required: 1. Using the payback approach to capital budgeting, which project has the shortest payback? 2. Which is the NPV of each project? Assume a discount rate of 10%. Assume a zero value for the investment at the end of ten years. 3. What is the IRR of the project?