ACCT 211 Fall 2017 USD Submit Quiz Quiz: Chapter 26 Homework This Question: 1 pt This Quiz: 3 pts possible 2013 complete) Expected annual net cash inflows Lados operates a chain of sandwich shops. The company is considering re $1,500,000, with zero residual value at the and of 10 years. Under 1,050,000 per year for 10 yoars, Lados would open three larger shops at a cost of $8.240,000. This plan is expected to generate net value for Plan B is $1,000,000.Lados uses straight -ine depreciation and requires Plan B, ar, annual return of 10% the estimated useful life of the properties. Estimated residual (Cick the ioon to view the Present Value of $1 able)(Click the ioon to view the Present Value of Arnuty of $1 table) Cickthe ioon to view te Future Value of Annuity of $1 table) (Cick the icon to view the Future Value of $1 table.) Requirements Compube the payback, the ARR the NPV, and the profitability index of these two plans 2. What the strenghs and weaknesses of these capital budgebng methods? 3. Which expansion plan should Lados choose? Why? Estimate Pian A's IRR. How does the IRR oompare with the companys required rate of retum? Requirement 1. Compute payback, the ARRthe NPV, and the profitability index of these two plans. Calculate the payback for both plans. (Round your answers to one decimal place, XX) ) Expected annual net can now ]. Payback - [ years -| 78|years 8440000 1500000 Plan A Plan B Calculate the ARR (aco nting rate of return)for bot, plans.(ord your answers to to r 240000 060000 estpercer, XX%) Choose from any list or enter any number in the input flelds and then continue to the next question 0