Chapter 16 Homework G Saved Help Save & Exit Submit Check my work 3 Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has identified two attractive alternatives. One involves purchasing a machine that would enable Mr. Fitch to offer frozen yogurt to customers. The machine would cost $7,830 and has an expected useful life of three years with no salvage value. Additional annual cash revenues and cash operating expenses associated with selling yogurt are expected to be $5,980 and $870, respectively 10 points Alternatively, Mr. Fitch could purchase for $10,040 the equipment necessary to serve cappuccino. That equipment has an associated with selling cappuccino are expected to be $8,310 and $2,390, respectively Income before taxes earned by the ice cream parlor is taxed at an effective rate of 20 percent. Required a. Determine the payback period and unadjusted rate of return (use average investment) for each alternative. (Round your 3911xed useful life of four years and no salvage value. Additional annual cash revenues and cash operating expenses eBook Print References answers to 2 decimal places.) Alternative 1 Alternative 2 Payback period years years Unadjusted rate of return