Jo Jo Inc. operates a chain of snack shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $$8,540,000.$ Expected annual

net cash inflows are $$1,600,000$ with zero residual value at the end of ten years. Under Plan B$,$ Jo Jo would open three larger shops at a cost of $$8,440,000.$ This plan is expected to

generate net cash inflows of $$1,050,000$ per year for ten years, the estimated life of the properties. Estimated residual value is $$1,000,000.$ Jo Jo uses straight$-$line depreciation and

requires an annual return of $6\%.$

Read the requirements.Jo Jo Inc. operates a chain of snack shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $ $8540000.$ Expected annual net cash inflows are $ $1600000$ with zero residual value at the end of ten years. Under Plan$$ B$,$ Jo Jo would open three larger shops at a cost of $ $8440000.$ This plan is expected to generate net cash inflows of $ $1050000$ per year for ten $$years$,$ the estimated life of the properties. Estimated residual value is $ $1000000.$ Jo Jo uses$$ straight$-$line depreciation and requires an annual return of $6\%.$