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Homework: Chapter 26 Homework Save Score: 0.15 of 1 pt 3 af a complete) HW Score: 71.7%, 2.15 of 3 pt Question Help P26-31A (similar to) Lulus Company operates a chain of sandwich shope. (Click the Icon to view additional Information.) Read the requirements. i Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 0.05 0% 0.528 10% 0.90 0.917 Requirement 1. Compute the payback, the ARR, the NPV, and the profilability index of these two plans. Calculate the payoeck for both plans. (Round your answers to one cecimal place, XX) Amount invested Expected arrual net cash into - Payback Plan AS 8,400,000 1,800,000 5.3 years PlanB S 8.100,000 1.080,000 7.4 years Calculate the ARR (accounting rate of return for bon plans. Round your newers to the nearest tenth percent. X.XX.) Average annual operating inco erage amount invested - ARR 0213 0191 0825 Plan 3577 3075 i More Info 12% 14% 15% 16% 10% 20% 0. 0 0.270 00:2 0 047 | 0.BOS 0.71801264 0.811 08.9 0.570 0.672 0.652 06183.242 0.5 0.519 147 237 1202 0.07 0.4&04120410 Dard 0.295 0450 040 0.375 0.35203120279 0.40 0.35 0.327 03: 5 0 2-8 0.26 .20e 02520202 0225 0.154 0162 0.162 0125 0.137 0.12 0.118 0.093 019 0034 0.055 0071 0050 0.015 00890091 D028 noen 004 0031 0037 0028 0031 0.022 009800280018 0033 0 122 2015 100280019 0013 DUB 2010 0014 0.00P 0011 00160010 0006 0.017 001 0028 0.005 0012 000 000 0.003 001 0.001 000.00 0.001 0.001 0854 0.035 0.0023 Oruce R22 .784 T4T OT13 0.581 0.66: C.62 0.9420 DYD 790 0.748 0.05 0.883 0853 0974 760 0711 05 3523 0.923 0.853 0.731 0.877 0.467 0914 DAST DYOS 0.145 0.52 0.424 0956 0820 0676 0.654 0286 0.758 0557 0.497 0.773 0.821 0.500 0.758 0.505 0555 0.534 0.714 0513 0.236 0.873 0.468 0.550 0.422 0206 0.112 0.768 0.310 0325 0.285 0.772 0381 0.21 0.220 0. 8 0.347 0.285 0.207 0.160.120 0574 0333 0 255 195 0.159 0321 02130185 0.141 0.107 0.062 CCR 0308 0.221 0.174 0.1210.00 OOTA 0286 0.142 0.007 0.007 0.08 0.CZ 080372 02280141 ONT 0054 0064 0.0210013 C.COS DDR 0278 9475 $ 0.250 0.847 0342 The company is considering to passible expansion plans. Plan A would open eghianaler shope ala celor 58,400,000 Expeded annual relash infows are $1,600 000 for 10 years, with zero residual valun at the end of 10 y rs. Under Plan 3, Lulus Company would aper three arger shaps at a cost of $8,100,000. This plan is expected to generale nel cash in lows of $1,080.000 per year for 10 Years, the estimated uschlife of the properties. Estimated ras dual value for Plan Bis $990,000 Lulus Company uses saight-ire depreciation and requires an annual retum of 8% 1756 6207 0250 0.526 Requirements Print Done 1. Comaute the payback, the ARR the NPV, and the profitability index of these IRODA What are the strengths and weaknesses of these capital budgeting methods? 3. Which expansion plan should Lulus Company choose? Why? 4. Estimate Plan As IRRION does the IRR compare with the company's required rate of run? Choose from any list or enter any number in the input fields and the Print Done Save Homework: Chapter 26 Homework Score: 0.15 of 1 pt *P26-31A (similar to) 3 of 3 (3 complete) HW Score: 71.7%, 2.15 of 3 pts Question Heino i Reference Lulus Company operates a chain of sandwich shops Click the icon to view additional information) Read the requirements 16% 20% 15% 0.870 18%, 0.847 0330 850 2.723 1.520 2.106 8472 7225 1. 3435 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, X.X.) Amount invested Expected annual net cash in low Payback Plan A S 8,400,000 1,600,000 5.3 years Plan B S 8,100,000 1,000,000 74 years Calculate the ARR (accounting rate of return) for both lans. (Round your answers to the nearest tenth percent, X.XX.) Average annual operating incom Averag u nt investerd ARR Plan A Plan B 712 9.787 Present Value of Ordinary Annuity of $1 Per cds 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 0.990 0.990 0.971 0.952 0.052 0.043 0.9350 926 0.8170 909 0.860 0.877 1.970 1.942 1.9134.89 1783 1.759 1738 1.680 1.617 2.961 2.891 2.829 2.775 2.531 2487 2402 3.932 3.838 3.717 9.630 2.546 3.170 3.087 4.713 4.550 4.452 5801 1.728 1.230 .012 2.586 8.162 7.79 9.471 4.983 0.530 8.111 9.253 8.780 11 255 10.575 9.9549.385 .53 12.134 11.348 10.5359.3959.324 13.004 12.108 11 28 10.563 9.829 13.885 12.349 11.0 11. 1 10.38 18 14.718 13.578 12.561 11.062 10.838 17 15.582 14.292 13.105 12.10 11.274 18 16.398 14,392 13.754 12.659 11480 17 226 15,6781432413.1341208511.14 10.3381 9604 2018.046 16.351 14.877 13.500 12.462 11.470 10.594 9818 18.357 17.011 15.415 14.029 12.821 11.764 16.838 1007 22 19.950 17.558 15.337 14.451 13.163 12.042 11.061 1020 20.456 3.292 1 44 14.357 13.289 12 30311 272 10371 9500 24 21.243 10.14 18 23 15 247 13.799 12.550 11 10 929 9707 25 22.023 19.523 17213 15.822 14.094 12.783 11 454 10.75 9.23 25 22.795 20.121 17.877 15.983 14.375 13.003 11.826 1080 9.8299.167 22.500 207071832716.300 1431321111967 10 995 1027 9237 22 316 21 2814 163141940812137 11051 101161 93071 25.056 21.314 19.158 16994 15.14118.591 12278 11.15 10.1931 9370 30226963 Choose from any list or enter any number in the input fields and then click Check Answer. Print Done Save Homework: Chapter 26 Homework Score: 0.15 of 1 pt P26-31A (similar to) 3 of 33 complete HW Score: 71.7%, 2.15 of 3 pts Question Help Reference Lulus Company operates a chain of sandwich shops. (Click the icon to view additional information.) Read the requirements Perecs 15% 10% 1.000 2.100 4.00 12% 1.000 2.120 9.374 14% 1.000 2.140 3:440 2.150 3473 4.993 6.742 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 Intlow Payback Plan A S 8,400,000 1,600,000 5.3 years Plan B 8,100,000 1,090,000 7.4 years Calculate the ARR (accounting rate of rotum) for both plans. (Round your answers to the nearest tonth percont, XX%) Average annual operating inoxime Average amount invested ARR Plan A Plan B Future Value of Ordinary Annuity of $1 1% 2% 3%9 5 % TNBXX 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2020 2033 2,040 2.050 2.080 2080 2089 2090 3.330 3.00 3.091 2.122 3.1843.215 3248 3.278 4080422 4.1844.246 4440 4.508 4.573 5.101 5204 6.309 6.416 6.751 680 5.985 6.152 6.308 6.466 6.833 7.214 7.434 7.682 8.286 8.003 8092 9.359 9.755 10.16 11.90 10.46 10.95 1146 11.67 12.17 12.01 12.08 13.41 14.19 12.81 14.8A 16.82 20.14 1496 1897 17.09 0.299.00 22.55 18.10 17.29 10.80 20.02 21.58 26.13 27.15 29.36 1726 18.64 20.16 21.8223.00 25.6727,89 30.32 38.00 18.43 21.78 1961 21.41 22.41 NO 19 23.025.4 SANONSAS 888888 2898 289119 25.55 Choose from any list or enter any number in the input fields and then click Check Answer Print Done Save Homework: Chapter 26 Homework Score: 0.15 of 1 pt P26-31A (similar to) 3 of 3 (3 complete HW Score: 71.7%, 2.15 of 3 pts Question Help Lulus Corcany operates a chain af sandwich shops (Click the icon to view additional information.) Reference Read the requirements Future Value of 51 Periods 18 3% 4% 5% 6% 7% 6% 1,082 1.156 1,145 1.225 Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of the two plane Calculate the payback for both plans. (Round your answers to one decimal place, X.X.) Amount invested 1 Expected annual not cash inflow Payback Plan A $ 8.400,000 $ 1,600.000 5.3 years Plan B 8.100,000 1,000,000 7.4 years Calculate the ARR (19ccounting rate of return) for both plans. (Round your answers to the nearest tenth percent, X.X%.) Average annual operating income Avnant amount invid = ARR Plan A Plan B - 001 9% 10% 12% 14% 15% 1.080 1.100 1.120 1 140 1.150 1.188 1210 1 294 1300 1.323 1.225 1.331 1406 1482 4.521 1412 1464 1574 1.689 1.749 1.5394,611 1.762 1.9 2.011 1.677 1.772 1974 2.156 2.313 128 129 2.211 2502 2.880 2.144 2476 2461 2.059 2.35 2.773 3.2152 2.518 2.594 3.10 3.707 4.648 4 ZZE 4.552 3.138 3.896 4818 5.350 3.066 34824 5492 6.153 3.312 3.798 4887 5.261 7.075 4.177 5.474 7.138 8.137 4.596 5.130 8.137 9.353 5.054 Base 9.276 10.78 4.717 5.560 7.890 1058 12.38 6.188.813 1206 14.20 8.727 9.84 1374 18.37 1080 1567 12.10 1786 21.64 1395 20 3E 7.911 9.850 15.18 2321 28.53 1069 1700 2846 32.92 *1.52 1904 30.17 3.11 21:32 3439 14.42 2388 50.07 12 17 1586 2575 57.58 3.912 18.22 2430 1928 3920 Choose from any list or enter any number in the input fields and then click Check Answer Print Done 7 parts remaining
