Happy Bean inc, operates a chain of lunch shops. The compary is considering two possible expansion plans, Plan A would cpen eight smaler ihops at a cost of s8.840,oco. Expeched annual net cash inflows are \$1,650,000 with zero rendial value at the end of ten years. Under Plan B, Hosey Btan would copn feree larger shopi st a cost of $6,440,000. This plan is expected to generate ne! cash infows of \$1,100,000 per year for ten years, the estmated lite of the propertios. Estimated residual value is $1,025,000. Haspy Bear ises atraight line deprecetion and requires an annual return of 6% (Click the icon to view the present vilue annuity factor thble.) (Click the icon to view the prosent value tactor tabie.) (Clck the icon to view the tuture value annuly facter table.) (Click the ison to view the future value factor table) Road the regvirements. Requirement 1. Compute the poyback pedod, the APR, and the NPV of these two plans. What are the itrengths and woaknesses of thete captar budgeting models? Begin by computing the payback period for both plane (Round your antwers so soe decimal place.) Pian A (in yearu) Plan B (in years) Requirements es of these cap 1. Compute the payback period, the ARR, and the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? 2. Which expansion plan should Happy Bean choose? Why? 3. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? capital budgeting models? Reference Reference ital budgeting models