Java Cafe is considering two possible expansion plans. Plan A is to open eight cafes at a cost of $4,180,000. Expected annual net cash inflows are $780,000 with residual value of $820,000 at the end of seven years. Under Plan B, Java Cafe would open 12 cafes at a cost of $4,200,000. This investment is expected to generate net cash inflows of $994,000 each year for seven years, which is the estimated useful life of the properties. Estimated residual value of the PIan B cafes is zero. Java Cafe. requires an annual return of 14%. Required: 1.1. Calculate the NPV for both plans 1.2. Which expansion plan should Java Cafe adopt? Why?