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HomeGrown Company is a chain of grocery stores that are similar to indoor farmer's markets, providing fresh, local produce, m products to consumers in urban
HomeGrown Company is a chain of grocery stores that are similar to indoor farmer's markets, providing fresh, local produce, m products to consumers in urban areas. HomeGrown is considering opening several stores in a new city, and has proposals from (Alpha, Beta, and Gamma companies) who would like to provide buildings for the new stores. The amount of expected revenue from the stores will depend on the design of the contractor. For example, if HomeGrown decide: open floor plan, with less shelf space for products, revenue would be lower overall. However, if HomeGrown decides on a very cro plan, it may lose customers who appreciate a more open feel. As the project manager for HomeGrown, you are responsible for deciding which if any of the proposals to accept. HomeGrown's m acceptable rate of return is 20%. You receive the following data from the three contractors: Wws and average annual income from customers for each of the three contractors' plar conclusions are presented in the following table. Compare methods of capital investment analysis in the following table to begin your evaluation of the three capital investment proposals Alph Beta, and Gamma. You decide to compare four methods: the average rate of return, cash payback period, net present value, and internal rate return methods. You begin by trying to eliminate any proposals that are not yielding the company's minimum required rate of return of 20%. Complete the following table, and decide whether Alpha, Beta, and/or Gamma should be eliminated because the average rate of return of their project is less than the company's minimum required rate of return. Complete the following table. Enter the average rates of return as percentages rounded to two decimal places. Cash Payback Method You've decided to confirm your results from the average rate of return by using the cash payback method. Using the following table, compute the cash payback period of each investment. If required, round the number of years in the cash payback period to a whole number
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