Need help with all parts in red. 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 $7,980and has an expected useful life of three years with no salvage value. Additional annual cash revenues and cash operating expensesassociated with selling yogurt are expected to be $6,010 and $840, respectively.Alternatively, Mr. Fitch could purchase for $9,960 the equipment necessary to serve cappuccino. That equipment has an expecteduseful life of four years and no salvage value. Additional annual cash revenues and cash operating expenses associated with sellingcappuccino are expected to be $8,380 and $2,400, respectively.Income before taxes earned by the Ice cream parlor is taxed at an effective rate of 20 percent.Requireda. Determine the payback period and unadjusted rate of return (use average Investment) for each alternative.Note: Round your answers to 2 decimal places.X Answer is complete but not entirely correct.Alternative 11.71✔ yearsAlternative 22.86 x years13.00 X %13.94%6Payback periodUnadjusted rate of return

The payback period illustrates the length of time it takes a company to recover its investment. When comparing potential investments, businesses can use this kind of analysis to select the project that will yield the highest return on investment the quickest, if that is a factor that matters to them.Calculation showing the payback period and unadjusted rate of return:Excel formula:Calculation of unadjusted rate of retrun:Calculation of unadjusted rate of returnAverage investment (A) (7980/2); (9960/2)$3,990$4,980Annual income (B)$2,008$2,792Unadjusted rate of return (C)=(B/A)50.33%56.06%Payback period:Alternative 1: 1.71Alternative 2: 1.89Unadjusted rate of return:Alternative 1: 50.33%Alternative 2: 56.06%