Carvers operates a chain of sandwich shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,440,000. Expected annual net cash inflows are $1,600,000 with zero residual value at the end of nine years. Under Plan B, Carvers would open three larger shops at a cost of $8,240,000. This plan is expected to generate net cash inflows of $1,250,000 per year for nine years, the estimated life of the properties Estimated residual value is $1,100,000 Carvers uses straight-line depreciation and requires an annual return of 10%