Happy lean in operes a chain of dochthops. The company is considering ter possible expansion plans Plan A would open agt er shops of cost of $8.440.000. Elected are c o ws are $1.450.000 at the end of ten years Under Pan B. Hay Bean would open t e larger shops at a cost of $1.240.000. The plan is spected to generate nel cash flows of $1,150,000 per year for ten years. The dife of the properties Estimated residuales 200.000. Happy Bean e ragine depreciation and requires ar reum of the con love the present value any factore) che con love the present value factorie) Ce the icon to view the future val u it factor ) che icon to view the Mure value ocorable) Read the regiments Hequirement 1. Compute the payback period. The M Begin by computing the payback period for bort pian Pun A andre of these two (Round your answers to one decimal place) Now compute the APR (counting rate of our for both plans Pound the percentages to the nearest in percent) Pan A Plan B Next compute the N inet present v e nder each plan. Begin with Plan A en compte Plan B Neprent value of Plan present a negative NV) Net present value of Plan Requirement 2. Which expansion plan should Happy Ban choose? Why? Recommendatione n has the represent value. It has a payback period Requirementa. Ei Plan A RR. How does the IRR compare with the company's required rate of return? The Formernal rate ofreu of Pan Als between