Click the icon to view Presents of Stable La Company casa chain of nowich shops can conto Viton ommation More Info Requirement Computer the payback, the ARR the NPV and the robindex of these two City for both plant Mound your decimal XX) The company is considering to posible expansion plans Plan A would open eight mater shops at a cost of $8,410,000 Expected annual show 31.525.000 for 10 years with residual value at the end of 10 years Under Plan B. Lacos Company would open the larger shop at a cost of 5.240.000 This plan is expected to generate net cash flow of 31.070.000 per year for 10 years, the estimated to the proces Entrated result for Plan Bis $1.300.000 Lados com any uses the depreciation and res eum of yen Man Plan Print Done CARRCO ator for both for you to the XX) NO care le present the begin by die NPV A. Come to any or in rely on your Plan Cash Anny PVP PVP 10 1-10 Croma or any out to the conto the next More Info Lados Company operates a chain of sandwich shops. Co the loon to view additional information Read the autements The company is considering two possible expansion plans. Plan Awe eight smaller shops at a cost of $8.410,000 Expected annual net cas $1,625,000 for 10 years, with zero residual value at the end of 10 ye Plan B Lados Company would open three larger shops at a cost of This plan is expected to generate net cash inflows of $1.070,000 per years, the estimated useful life of the properties. Estimated residual Bis 51,300,000, Lados Company uses straight-line depreciation and annual return of 9% Caciulate the NPV (net present value of each plan. Begin by calculating the NPV of Pan A. (Complete wwwer boxes. Enter ao ploces Xxxx Use parentheses or a mission for a negative not present value) Plan : Net Cash Annuity PV Factor PV Factor Present Years Inflow (9%, 010) (-9%, 10) Value 1-10 Presentate of auty 10 Present value of residual value Total PV of cash now Print Done Napresent of Plan A Calculato a New of Plan B Complete all newer bores. Enter a "O for my pero balances or amounts that do not reply to the plan inter any factor amounts to three decimal aces. xxxx Ust parents presenta Plan Years 1.10 Profil Net Cash Annuity PV Factor Iwow w10) PV Factor 49%, 10) Present Value Choose from an enter any number in the input fields and then continue to the next question Rood the woments The company is considering two possible expansion plans Plan A wou eight smaller shops at a cost of $8.410,000. Expected annual net cash $1.525.000 for 10 years, with zero residual value at the end of 10 years Plan B Lados Company would open three larger shops at a cost of $8 This plan is expected to generate net cash inflows of $1.070,000 per ye years, the estimated useful life of the properties. Estimated residual volo Bis 51,300.000. Lados Company uses straight line depreciation and rec annual return of 9 Present Value Pian Net Cash Annuity PV Factor PV Factor Years Info (9%810) (0%, 10) 1.10 Present value of annuity 10 Pront value of residual Total PV of cash inflows 0 Innanvestment Net present value of Pan B Calculate the profitability index of these two plans. Round to two decimal places XXX) Print Done Profitability Index PA Plans Requirement 2. What are the rengths and weaknesses of the capital budgeting methods? Watch the form with the strength and were sted for each of the four capital budgeting models Choose from a toronter any number in the input fields and then continue to the next question Co the contradditional Information Read the requirements The company is considering two possible expansion plans Plan eight smaller shops at a cost of $8.410.000. Expected annualnet $1,625,000 for 10 years, with zero residual value at the end of 10 ye Plan B, Lados Company would open three larger shops at a cost of This plan is expected to generate net cash inflows of $1,070,000 per Requirement 2. What are the strengths and weakness of these capital budgeting methods? years, the estimated useful life of the properties. Estimated residual Bis $1,300,000 Lados Company uses straight line depreciation and Watch them with the strengths and weaknesses listed for each of the four capital budgeting models annual return of 9 Capital Budgeting Method Strengths/Weaknesses of Capital Budgeting Method is based on cash flows can be used to ens protability, and takes into account Print Done the time value of money. It has one of the weaknesses of the other models Is my to understand is based on cash flow and highlights risks However, it ignores profitability and the time value of money Can be used to assess profitability, but it ignores the time value of money laws us to compare tomative investments in present alors and it also accounts for difference in the investments to cool. It has one of the wasses of the other models Requirement 3. Which expansion plan should Lados Company choose? Why? Lados Company who is in because the payback period, ARR. not present value, and a profitability Index Requirement in Plan A's RR How does the IRR Compare with the many review of return? Choose from any or any in the input eldsund then continue to the next question DO Read the moviments The company eight smaller shops at a cost of $8.410,000. Expected annuat nate $1,525,000 for 10 years, with zero residual value at the end of 10 y Plan B. Lados Company would open three larger shops at a cost This plan is expected to generate net cash inflows of $1.070.000 is based on cash flow, can be used to assess profitability, and take into account years, the estimated useful life of the properties. Estimated residual Bis $1,300,000. Lados Company uses straight-line depreciation an the time value of money. It has none of the weaknesses of the other models annual return of 9% is ay to understand is based on cash flows, and highlights risks However, it ignores profitability and the time value of money Print Done Can be used to assess profitability, but it ignore the time value of money. It allows us to compare teative investments in prestatu tome and it also accounts for differences in the investments initialcool. It has one of the weaknesses of the other models Requirement 3. Which expansion plan should lados Company choos? Why? Ludos Company whould invest in because the payback period, net present value and a profitability index Requirement. Emma Pan A. How does the comowo win the company required to of retur? The Real truturo Pan Ass between ARR This the cow's murder of Choose from any rere any number in the input bold and then continue to the question Click the icon to view Presents of Stable La Company casa chain of nowich shops can conto Viton ommation More Info Requirement Computer the payback, the ARR the NPV and the robindex of these two City for both plant Mound your decimal XX) The company is considering to posible expansion plans Plan A would open eight mater shops at a cost of $8,410,000 Expected annual show 31.525.000 for 10 years with residual value at the end of 10 years Under Plan B. Lacos Company would open the larger shop at a cost of 5.240.000 This plan is expected to generate net cash flow of 31.070.000 per year for 10 years, the estimated to the proces Entrated result for Plan Bis $1.300.000 Lados com any uses the depreciation and res eum of yen Man Plan Print Done CARRCO ator for both for you to the XX) NO care le present the begin by die NPV A. Come to any or in rely on your Plan Cash Anny PVP PVP 10 1-10 Croma or any out to the conto the next More Info Lados Company operates a chain of sandwich shops. Co the loon to view additional information Read the autements The company is considering two possible expansion plans. Plan Awe eight smaller shops at a cost of $8.410,000 Expected annual net cas $1,625,000 for 10 years, with zero residual value at the end of 10 ye Plan B Lados Company would open three larger shops at a cost of This plan is expected to generate net cash inflows of $1.070,000 per years, the estimated useful life of the properties. Estimated residual Bis 51,300,000, Lados Company uses straight-line depreciation and annual return of 9% Caciulate the NPV (net present value of each plan. Begin by calculating the NPV of Pan A. (Complete wwwer boxes. Enter ao ploces Xxxx Use parentheses or a mission for a negative not present value) Plan : Net Cash Annuity PV Factor PV Factor Present Years Inflow (9%, 010) (-9%, 10) Value 1-10 Presentate of auty 10 Present value of residual value Total PV of cash now Print Done Napresent of Plan A Calculato a New of Plan B Complete all newer bores. Enter a "O for my pero balances or amounts that do not reply to the plan inter any factor amounts to three decimal aces. xxxx Ust parents presenta Plan Years 1.10 Profil Net Cash Annuity PV Factor Iwow w10) PV Factor 49%, 10) Present Value Choose from an enter any number in the input fields and then continue to the next question Rood the woments The company is considering two possible expansion plans Plan A wou eight smaller shops at a cost of $8.410,000. Expected annual net cash $1.525.000 for 10 years, with zero residual value at the end of 10 years Plan B Lados Company would open three larger shops at a cost of $8 This plan is expected to generate net cash inflows of $1.070,000 per ye years, the estimated useful life of the properties. Estimated residual volo Bis 51,300.000. Lados Company uses straight line depreciation and rec annual return of 9 Present Value Pian Net Cash Annuity PV Factor PV Factor Years Info (9%810) (0%, 10) 1.10 Present value of annuity 10 Pront value of residual Total PV of cash inflows 0 Innanvestment Net present value of Pan B Calculate the profitability index of these two plans. Round to two decimal places XXX) Print Done Profitability Index PA Plans Requirement 2. What are the rengths and weaknesses of the capital budgeting methods? Watch the form with the strength and were sted for each of the four capital budgeting models Choose from a toronter any number in the input fields and then continue to the next question Co the contradditional Information Read the requirements The company is considering two possible expansion plans Plan eight smaller shops at a cost of $8.410.000. Expected annualnet $1,625,000 for 10 years, with zero residual value at the end of 10 ye Plan B, Lados Company would open three larger shops at a cost of This plan is expected to generate net cash inflows of $1,070,000 per Requirement 2. What are the strengths and weakness of these capital budgeting methods? years, the estimated useful life of the properties. Estimated residual Bis $1,300,000 Lados Company uses straight line depreciation and Watch them with the strengths and weaknesses listed for each of the four capital budgeting models annual return of 9 Capital Budgeting Method Strengths/Weaknesses of Capital Budgeting Method is based on cash flows can be used to ens protability, and takes into account Print Done the time value of money. It has one of the weaknesses of the other models Is my to understand is based on cash flow and highlights risks However, it ignores profitability and the time value of money Can be used to assess profitability, but it ignores the time value of money laws us to compare tomative investments in present alors and it also accounts for difference in the investments to cool. It has one of the wasses of the other models Requirement 3. Which expansion plan should Lados Company choose? Why? Lados Company who is in because the payback period, ARR. not present value, and a profitability Index Requirement in Plan A's RR How does the IRR Compare with the many review of return? Choose from any or any in the input eldsund then continue to the next question DO Read the moviments The company eight smaller shops at a cost of $8.410,000. Expected annuat nate $1,525,000 for 10 years, with zero residual value at the end of 10 y Plan B. Lados Company would open three larger shops at a cost This plan is expected to generate net cash inflows of $1.070.000 is based on cash flow, can be used to assess profitability, and take into account years, the estimated useful life of the properties. Estimated residual Bis $1,300,000. Lados Company uses straight-line depreciation an the time value of money. It has none of the weaknesses of the other models annual return of 9% is ay to understand is based on cash flows, and highlights risks However, it ignores profitability and the time value of money Print Done Can be used to assess profitability, but it ignore the time value of money. It allows us to compare teative investments in prestatu tome and it also accounts for differences in the investments initialcool. It has one of the weaknesses of the other models Requirement 3. Which expansion plan should lados Company choos? Why? Ludos Company whould invest in because the payback period, net present value and a profitability index Requirement. Emma Pan A. How does the comowo win the company required to of retur? The Real truturo Pan Ass between ARR This the cow's murder of Choose from any rere any number in the input bold and then continue to the