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In: AccountingTwo people have come to yourrestaurant with different offers.Sam"I'll sell you abrand...Two people have come to yourrestaurant with different offers.Sam"I'll sell you abrand new soft-serve ice cream machine. It'll cost $4,000 andshould provide you with an extra $1,000 of revenue every year.You'll only have to pay about $100/year to maintain it, and itshould last for nine years.Ella"I run a partyvenue just down the street from your restaurant. I'll charge you$10,000 to put signage up in the venue, and you can become mypreferred caterer for weddings, bar mitzvahs, etc. I bet I can getyou $50,000 of additional revenue every year, and I know yourcontribution margin is around 10%. Let's say this arrangement willlast for five years."Your required rate of return is 7%.1What's the payback period for each of theseoffers?2What's the NPV of each of these offers?3What's the approximate IRR of each of theseoffers?