iments uture Value of $1 ta More Info uture Value of Ordin Compute back for The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,500,000. Expected annual net cash inflows are $1,625,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lemons Company would open three larger shops at a cost of $8,100,000 This plan is expected to generate net cash inflows of $1,100,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan Bis $1,000,000. Lemons Company uses straight-line depreciation and requires an annual return of 8% yback 2 years 14 years R (account Average Print Done Done ARR % % (Click the icon to view Present Value of $1 table.) Lulus Company operates a chain of sandwich shops. i (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Plan A: Net Cash PV Factor Present Annuity PV Factor (i=9%, n=10) Years Inflow (i=9%, n=10) Value 1 - 10 Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment Net present value of Plan A Calculate the NPV of Plan B. (Complete all answer boxes. Enter a "0" for any zero balances or amounts that do not apply to the plan. Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Plan B: Net Cash Annuity PV Factor PV Factor Present Years Inflow (i=9%, n=10) (i=9%, n=10) Value 1 - 10 Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment Net present value of Plan B Lulus Company operates a chain of sandwich shops. (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Calculate the profitability index of these two plans. (Round to two decimal places X.XX.) Profitability index Plan A Plan B