(Cick heicon lo view Presert Value of 31 table. (Cck te con to vew Present Value of Ordnry Annuty of SI table.) (CIck e icon to vew Future Value of $1 table. (CIck the icon to vicw Future Value af Ordinary Annuity of $1 table.) 0 :Click the lon to viaw additional Intomaton.) Requirement 1. ConJ1a 1he payback, the ARR he NPV, 9nd the proftabilty ide or teee twoplan8. Calaulsle the payback for bolh prs. (Round your arswers to oe decimal place, X.X. - Payback Flan A Plan B Calculate the ARR(arcourting rane of retum} fur both pars. (Round your answers to the neares"enth percent, X.X%.) years Plan A Flan B adulate he N V ne presnt due of aath plan. Begin by cala ating the N V Pla A Compete al answer bONes. Enter a elue. or any zero balances or amounts that dD nc apply a na pla. Em r any acoor amounts to hree dec mal paces xxxx u52 pare reses ra nus s n or a negative ne prese Plan A Net Cash Annuity PV Factor Fg%, n:10) PW Factor Present n-10) 1-10 Present value of annuty 10 Present value of rescual vaue Tolal Py of cash inlows Inital Investmen Nct preson valuc af Plan A Calculate the N V u Plan B Complete all answer boxes. En er 3 e or any zero bdances or mounts that do not applyso in p r. rter any actor mounts to three deamal places uee pare theses ura mnus sign ora negative net reser value. Plan B Net Cash Annuity PV Factor P Factor Present Infiow n-10) 1-10 Present value ofanuty 10 Present value ofresdual vaue Tolal Py of cash inlows 0 Inial Invesmen. Net presert value af PlanB Calulsle the proitabiity inde of theee two plan. IRound to two decimel plaves X.xx. -Profilabiily indev Plan A Plan B Requiroment 2. Wha a tha sagtnd wakncssas a thase capital budgating mehodsi Malun the term with th srengths and weaknesses listed for escn of the four capital budgeng models. Capital Budgeting Method Strengths/Weaknesses of Capital Budgeting Method Is based on cash flrws, can be used to assess prontabilty, and takes i account the ime value of money. It has none of the weakne8888 of the cther models Is essy to understand, is based on cash lows, and highlights riaks. Howavar, H ignaes prothablty and the sme value of money Can be used to 888888 profitsbiity, but it ignores the time value of money lt alows us to tornare 3berlative rvestments in present value terms and it also accounts for cilferens in the inveatmenta' ritial coat Ir ha8none of the Raquiramant 3. which axpansion plan shauld Limas Company choasa? Why? mas campany shouc invast n because It has a ' panack period, a ARR, a net resant valua and a R quiremant 4. Estimata Plan A's IRR. How does the IRR conpare wthth a company's raquined rate of raturn? The IRR (inamal af This rate prontablity IndAX rata of ratum of Flan As berwnan | the company's hunde rate of 9%. Choose from any Ist or enter any number in the rput felde and then corntinue to the next question. More Info The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,450,000. Expected annual net cash inflows are $1,525,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Limes Company would open three larger shops at a cost of $8,300,000. This plan is expected to generate net cash inflows of $1,000,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000. Limes Company uses straight-line depreciation and requires an annual return of 9%. Print Done Present Value of Ordinary Annuity of $1 8 10.990 0.980 10.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0847 0.833 2 0.98010.961 0.943 0.925 0.907 0.890 0.873 0.857 0.84210.82610.797 0.769 0.756 0.743 0.718 0.694 3 0.97110.942 0.915 0.889 0.8640.840 0.816 0.794 0.772 0.75110.7120.675 0.658 0.641 0.609 10.579 4 0.9610.924 0.888 0.8550.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 5 0.951 0.906 0.863 0.8220.7840.747 0.713 0.681 0.650 0.62110.567 0.519 0.497 0.476 04370.402 6 0.9420.888 0.83710.790 0.746 0.705 0.666 0.630 0.596 0.5640.507 0.456 0.4320.410 0.370 0.335 7 0.933 0.871 (0813 0.760 0.711 0.665 0.623 0.583 0.547 0.5130.452 0.400 0.376 0.354 0.314 0.279 8 0.923/0.85310.78910.73110.6771062710.58210.54010.50210.46710.40410.35110.32710.30510.26610.233 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.3080.284 0.263 0.2250.194 10 0.9050.8200.744 0.676 0.614 0558 0.508 0.463 0.422 0.386 0.322 0.2700.247 0.227 0.191 0.162 11 0.89610.80410.72210.65010.585 10 527 0.4751042910 38810.35010.287 023710.21510.18510.16210.135 12 0.887 0.788 0.701 0.625 0.557 0497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 13 0.879 0.773 0.681 10.601 0.530 10469 0.4150.368 0.326 0.29010.229 0.182 0.16310.145 0,1160.093 14 0.870 0.758 0.661 10.57710.505 0.442 0.38810.340 0.299 10.263 0.205 0.160 0.141 0.125 0.09910.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.3620.315 0.275 0.239 0.183 0.140 0.123 0.108 0.0840.065 16 0.853 0.728 0.623 0.534 0.4580.394 0.33910.292 0.252 0.218 0,163 0.123 0.107 0.093(0.071 0.054 17 0.844 0.714 0.605 0.513 0.436 037110.31710.270 0.231 10.198 0.146 0.10810.093 0.08010.060 10.045 18 0.836 0.700058710.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 10.095 0.081 0.06910.0510.038 19 0.82810.686 0.57010475 0.39610.33110.277 0.232/0.19410.164 0.11610.08310.07ol0.06010.043 0.031 20 0.82010.673105540.456 0.377 I0.31210.25810.21510.17810.149 0.10410.07310.06110.051 I0.0370026 21 0.811|0.660|0.538|0439|0.359|0.294|0.242|0.1990.164|0.135|0.093|0.0640053|0.044|0.031 |0.022 22 0.803 0.647 10.52210.4220.34210 27810.226 0.18410.1500.123(0.08310.05610.046 0.038 0.02610018 23 0.795 0.634 0.507 0.406 0.326 0.262 0211 0.17010.138 0.112 0.074 00490.040 0.033 0.022 0.015 24 0.788 0.622 0492 0.3900.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.0350.028 0.019 0.013 25 0.78010.610 0478 0.375 0.295 0 23310.18410.146 0.116 0.092 0.05910.038 10.030 0.0240.016 0.010 26 0.772 0.598 0464 0.361 0.281 0 220 0.172 0.135 0.106 0.084 0.053 0.0330.026 0.021 0.014 0.009 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.011 0.007 28 0.7570574|0437 0.33310.25510.19610.1500.11610.090 0.06910.04210.026 10.02010.016|0.010 0.006 29 0.749 0.563 042410.321 0.243 0.1850.14110.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 30 0.7420.552 0412 0.308 0.231 0.17410.13110.09910.075 0.057 0.033 0.020 0.015 0.012 0.00710.004 40 0.67210.453 0.307 0.208 0.142 0.097 0.06710.046 0.032 0.02210.011 10.005 0.0040.003 0.001 10.001 50 0.608 0.372 0 228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 1 0.990 0.980 0.971 10.962 0.9520.943 0.935 0.926 0.917 0.909 0.8930.87710.87 15 1.ss? 1 13 i 1.8 i 1.N 1.fns 1.rse 1.z?ii 113HV i.i i i 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.4872.40 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.2403.1703.0372.91 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.7913.60 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.75915.32 13 121341 6.986 | 9.394 |8.853 | 8.358 | 7.904 7.4877. 2 15 13.86512.84911.938 11.118 10.3809.712 9.108 8.559 8.061 16 14.71813.57812.561 11.65210.83810.106 9447 8.851 8.313 7.8246.97 13.Gte) 11.6310.10,0 ie,3FA 28 24.3162128118.76416.66314.89813.40612.13711.05110.1169.307 250211BB 16.segiil 1asen 12.211.1 L113stREREV26 4sri1(1419 Future Value of $1 Future Value of Ordinary Annuity of $1 eriod nodsl 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% 11.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 |201012020|2.030|2.040|2.050|2.060|2.072.080|2.090|2.100|2120|2140|2150 3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4 4.060 4.122 4.184 4.246 4.310 4.3754.440 4.506 4.573 4.641 4.779 4.9214.993 5 5.101 5.204 5.309 5.416 5.526 5.637 5.7515.8675.985 6.1056.353 6.610 6.742 6 6.1526.3086.468 6.633 6.802 6.975 7.1537.336 7.5237.716 8.115 8.536 8.754 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654(8.923 9.200 9.487 10.09 10.73 11.07 8 8.286 8.583 8.892 9.214 9.549 9.89710.260 10.64 11.03 11.44 12.30 13.23 13.73 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.5618.53 20.65 23.04 24.35 12 12.68 13.41 14.1915.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.6815.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 1 11010|1.02011.030|1.040 | 1.050 | 1.060 | 1.070|1.080 | 1.090|1.100 | 1.120|1.140|1.150 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 11.030 | 1.061 | 1.093 | 1.125|1.158|1.191|1.225|1.260 | 1.295|1.331 | 1.405|1.482|1.521 4 1.041 | 1.082 | 1.126|1.170|1216|1.262 | 1.311 | 1.360 | 1.412|1.464 | 1.574|1.689|1.749 5 1.0511.104 1.159 1.217 1.276 1.338 1.403 1.4691.539 1.611 1.762 1.925 2.011 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.9742.195 2.313 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.3582.773 3.252 3.518 10 1.105 1.219 1.3441.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 13 1.138 1.294 1.4691.665 1.886 2.133 2.410 2.720 3.066 3.4524.363 5.4926.153 14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 15 1.161 1.346 1.558 1.8012.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 16 11.173|1.373 | 1.605|1.873|2.183|2.540|2.952 | 3.426|3.970|4.595|6.130|8.137 9.358 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.5607.690 10.58 12.38 7 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.9542.75 50.98 55 20.01 21.76 23.70 25.84 28.21 17 18.43 2 30.84 33.75 36.9740.5448.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 19 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.2 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 22 24.4727.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 23 25.72 28.85 32.45 36.62 41.4347.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3 24 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118.2 158.7 184.2 25 28.24 32.03 36.46 41.65 47.73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 26 29.53 33.67 38.55 44.31 51.1159.16 68.68 79.95 93.32 109.2 150.3 208.3 245.7 27 30.82 35.34 40.71 47.08 54.67 63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6 28 32.13 37.05 42.9349.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 29 33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 124.1 148.6 214.6 312.1 377.2 30 34.78 40.57 47.5856.08 66.44 79.06 94.46 113.3 136.3 164.5 241.3 356.8 434.7 1 19 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.6046.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.786 3.400 4.1415.034 6.109 7.400 10.80 15.67 18.82 22 1.245 1.5461.916 2.370 2925 3.6044.430 5.4376.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.2588.954 13.55 20.36 24.89 24 1.2701.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 25 |1.282|1.641|2.094|2.666|3.386|4.292 5.427|6.848|8.623|10.83|17.00|26.46|32.92 26 1.2951.673 2.157 2.772 3.556 4.549 5.807 7.396 9.399 11.92 19.04 30.17 37.86 27 1.308 1.707 2.221 2.883 3.733 4.822 6.214 7.988 10.25 13.11 21.32 34.39 43.54 28 |1.321|1.741|2.288|2.999|3.920|5.1 12|6.649|8.627|11.17|14.42|23.88|39.20 50.07 29 13351.776 2.357 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 57.58 30 1.348 1.811 2.427 3.243 4.322 5.743 7.612 10.06 13.27 17.45 29.96 50.95 66.21 40 1.489 2.208 3.262 4.801 7.040 10.29 14.97 21.72 31.4145.26 93.05 188.9 267.9 50 |1.6452.692|4.384|7.107|11.47 | 18.42|29.46|46.90|7436|117.4 289.0|700.2 | 1,084 40 |48.89|60.4017540|95.03|120.8154.81199.6 |259.1|337.9|442.6|767.1 | 1,342|1,779 50 64.46 84.58 112.8 152.7 209.3 290.3 406.5 573.8 815.1 1,164 2,400 4,995 7,218 PrintDone Print Done