Calculate the ARR (accounting rate of return) for both plans. (Round your answers to the nearest tenth percent, X.X%.) Average annual operating income | Average amount invested ARR i More Info Plan A % Plan B % ma Caclulate the NPV (net present value) of each plan. Begin by calculating the NPV of Plan A. (Complete all answer boxes. Enter a "0" for any ? places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Plan A: Net Cash Annuity PV Factor PV Factor Present The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,500,000. Expected annual net cash inflows are $1,625,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lolas Company would open three larger shops at a cost of $8,300,000. This plan is expected to generate net cash inflows of $1,050,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000. Lolas Company uses straight-line depreciation and requires an annual return of 10%. Years Inflow (i=10%, n=10) (i=10%, n=10) Value 1 - 10 Present value of annuity 0 0 o 10 Present value of residual value Total PV of cash inflows Print Done 0 Initial Investment (8500000) Net present value of Plan A Plan B: Net Cash Annuity PV Factor PV Factor Present Years Inflow (i=10%, n=10) (i=10%, n=10) Value 1 - 10 Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment (8300000) Net present value of Plan B Calculate the profitability index of these two plans. (Round to two decimal places X.XX.) Present value of net cash inflows | Initial investment Profitability index Plan A II Plan B =