(Click the icon to view Future wors to one dam Requirement 1. Compute the payback, the ARR the NPV and the profitability index of these two plans Calculate the payback for both plans (Round your answers to one decimal place XX) Amount invested Expected annual net cash inflow P ayback Plan A 8.450,000 5.3 years Plan B 8,300,000 1,050,000 79 years Calculate the ARR (accounting rate of return) for both plans (Round your answers to the nearest bonth percent, XX Average annual operating income Average amount invested N A RR Plan A Plan B 0 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 not cash inflows oro $1,600,000 for 10 years, with zero residual value at the end of 10 years Under Plan B. Lulus Company would open three loger Shops at a cost of $8,300,000 This plan is expected to generate nel cash flows of $1,050,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan Bis $1,000,000 Lulus Company uses straight line depreciation and requires an annual return of 9 Print Done