Lajos Company operates a chain of sandwich shops. a (Click the icon to view additional information.) Read the requirements. (Click the icon to view Present Value of $1 table.) (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.) 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 inflow Payback Plan A $ 8,440,000 | $ 1,550,000 5.4 years Plan B $ 8,150,000 1,030,000 7.9 years Calculate the ARR (accounting rate of return) for both plans. (Round your answers to the nearest tenth percent, X.X%.) Average annual operating income Average amount invested Plan A Plan B EA EA AV ARR % 0 More Info The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,440,000. Expected annual net cash inflows are $1.550.000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lajos Company would open three larger shops at a cost of $8,150,000. This plan is expected to generate net cash inflows of $1,030,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,100,000. Lajos Company uses straight-line depreciation and requires an annual return of 10%. 26 |0.322 1030 10:3510,795 10.-1762 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 10.990|0.980|0.971|0.9620.952|0.9430.9350.9260.9170.909 0.893 0.877 0.870 0.8620.8470.833 10.980|0.961|0.943|0.9250.9070.890 0.8730.8570.8420.8260.797 0.769 0.756 0.7430.7180.694 10.9710.9420.915|0.889|0.864|0.840|0.816|0.7940.772|0.751 0.712 0.675 0.658 0.641 0.6090.579 0.961 0.924|0.8880.8550.8230.7920.7630.7350.708 0.6830.636 0.592 0.572 0.552 0.516 0.482 0.951 0.9060.8630.822 0.784 0.7470.713|0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.4370.402 0.9420.8880.8370.790 0.7460.7050.6660.630|0.5960.5640.507 0.456 0.432 0.4100.370 0.335 7 0.9330.8710.813|0.7600.711 0.6650.6230.5830.5470.5130.4520.400 0.376 0.354 0.3140.279 0.923|0.8530.7890.731 0.6770.6270.5820.540 0.502 0.467 0.4040.351 0.3270.305 0.266 0.233 10.914|0.8370.766|0.7030.6450.5920.5440.500 0.4600.4240.361 0.308 0.2840.263 0.225 0.194 10 10.9050.8200.7440.676|0.614|0.5580.5080.463|0.4220.386 0.322 0.270 0.247 0.227 0.191 0.162 0.896 0.8040.7220.650 0.585 0.527 0.475 0.429 0.3880.350 0.287 0.237 0.215 0.195 0.162 0.135 0.8870.7880.701 0.6250.5570.4970.4440.3970.3560.3190.257 0.208 0.187 0.168 0.1370.112 10.879|0.7730.6810.601 0.530|0.469|0.415|0.368|0.326|0.29010.229 0.182 10.1630.145|0.116 0.093 14 0.8700.7580.661|0.577|0.5050.442|0.388|0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 10.861 0.743|0.6420.5550.4810.417|0.362|0.3150.2750.2390.183 0.1400.123 0.108 0.084 0.065 16 10.853|0.728|0.623|0.534|0.458|0.394%0.339|0.292|0.252|0.218|0.163 0.123 |0.107|0.093 0.071 0.054 10.8440.7140.6050.5130.4360.371 0.3170.2700.2310.1980.146 0.108 0.093 0.080 10.060 0.045 0.836 0.7000.587 0.4940.4160.350 0.296 0.250 0.212 0.180 0.1300.095 0.081 0.069 0.051 0.038 10.8280.6860.570|0.4750.3960.331 0.2770.232|0.194|0.1640.116 0.083 0.07010.060 0.0430.031 0.8200.6730.5540.456 0.3770.3120.258 0.2150.1780.149 0.1040.0730.061 0.051 0.037 0.026 10.811 0.660|0.538|0.439|0.359|0.294|0.242|0.1990.164|0.135/0.093 |0.064 0.053 0.044|0.031 0.022 22 0.803)0.6470.52210.4220.342|0.278|0.2260.1840.1500.1230.0830.056 0.046 0.038 0.026 0.018 10.795|0.634|0.507 0.4060.3260.262 0.211 0.1700.138 0.112 0.0740.049 0.04010.033 0.022 0.015 0.7880.622|0.492|0.390|0.310|0.2470.1970.158 0.1260.1020.066 0.043 0.035 0.028 0.019 0.013 25 0.78090.6100.478|0.375 0.2950.233|0.1840.146 0.1160.092 0.059 0.038 0.030 0.024 0.0160.010 0.7720.598 0.4640.361 0.2810.220|0.1720.1350.106|0.0840.053 0.033 0.026 0.021 0.014 0.009 10.7640.5860.450|0.347|0.268|0.207|0.161 0.125|0.098 0.076 0.047 0.0290.0230.0180.011 |0.007 10.757 0.5740.4370.333|0.2550.1960.1500.116|0.090|0.0690.042 0.026 0.0200.0160.0100.006 29 0.7490.5630.424 0.3210.243|0.1850.1410.107|0.082 0.0630.037 0.022 0.0170.014 0.008 0.005 0.7420.5520.412 0.308|0.231|0.174|0.1310.099|0.0750.057 0.033 0.0200.015 0.012 0.007 0.004 40 0.6720.453 0.3070.2080.1420.097 0.067 0.0460.0320.0220.011 0.005 0.0040.003 0.001 0.001 10.608|0.372|0.228|0.1410.087|0.054 0.034|0.0210.013|0.0090.003 0.001 0.001 0.001 103310.038 203412.0180.01 ovo AWN Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.8930.8770.8700.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.8331.808 1.783 1.759 1.7361.6901.6471.6261.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 3.890 (3.791 |3.605|3.433|3.352|3.274|3.127 (2.991 5.795 5.601 5.417 5.2425.076 4.917 4.767 4.623 4.486 4.355 4.111 3.8893.784 3.685 3.498 3.326 5.033 4.868|4.564 4.288 4.160|4.039|3.812|3.605 5.535 5.3354.968 4.639 4.487|4.344|4.078[3.837 8.566 8.1627.786 | 7.435 7.108 6.802 6.515 6.247 5.995 5.7595.328 4.9464.772 4.607 4.3034.031 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.1455.6505.216|5.019 4.8334.494 4.192 10.3689.787 9.2538.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938|5.453|5.234 5.0294.656 4.327 11.255 10.575 9.954 9.3858.863 8.384 7.943 7.536 7.161 16.8146.1945.660 5.421 5.1974.793 4.439 12.134 11.348/10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.1036.4245.8425.5835.3424.910 4.533 [13.004|12.106|11.296|10.5639.899 9.295 8.745 8.244 | 7.786 17.3676.628]6.002 15.72415.468|5.008|4.611 13.865 12.849 11.938 11.11810.380 9.712 9.108 8.559 8.061 7.606 6.811 6.1425.847 5.575 5.092 4.675 16 14.71813.578 12.561 11.652 10.838/10.1069.447 8.851 8.313 7.8246.9746.2655.9545.669 5.1624.730 17 15.562 14.292 13.16612.166/11.27410.477 9.763 9.122 8.544 8.022 7.1206.373|6.047 5.749 5.222 4.775 18 16.398 14.992 13.754 12.65911.690 10.828 10.059 9.372 8.756 8.2017.250 6.4676.128 5.818 5.273 4.812 19 17.22615.678 14.32413.134 12.08511.15810.336 9.604 8.950 8.365 7.3666.5506.1985.877 5.316 4.844 2018.04616.351|14.877|13.590 12.462 11.47010.594 9.818 9.129 8.5147.4696.623|6.2595.929 5.353 4.870 236.9092073153344.397 18.857|17.011 15.415 14.029 12.821 11.764 10.836/10.017 9.292 8.649 7.5626.687 6.3125.9735.384 4.891 22 19.66017.65815.937|14.45113.16312.042 11.061/10.2019.442 8.772 7.6456.7436.3596.011 5.410 4.909 23 20.45618.292 16.444/14.85713.48912.303 11.272 10.371 9.580 18.8837.7186.7926.3996.044 5.432 4.925 24 21.24318.914 16.93615.247 13.799 12.550 11.469 10.529 9.707 8.985 7.7846.835|6.4346.073 5.451 4.937 22.02319.523 17.41315.622 14.094 12.783/11.654 10.675 9.823 19.077 7.8436.8736.464 6.097 5.467 4.948 26 22.79520.121/17.87715.98314.37513.00311.826 10.810 9.929 9.1617.8966.906 6.491 6.118 5.480 4.956 27 23.560 20.70718.32716.33014.64313.211 11.987 10.93510.027|9.2377.9436.9356.514 6.1365.492 4.964 24.31621.28118.76416.663|14.89813.406 12.137 11.051 10.116 9.3077.9846.961 6.5346.1525.5024.970 25.06621.844|19.188|16.984|15.141/13.591/12.278|11.158/10.198|9.3708.0226.9836.551 6.166 15.51014.975 30 5.80822.396 19.60017.292 15.37213.765 12.40911.258 10.2749.4278.0557.003|6.5666.1775.517 4.979 40 32.83527.355|23.115/19.79317.159 15.046 13.332 11.925/10.7579.7798.244 7.1056.6426.233 5.548 4.997 50 39.196 31.42425.73021.48218.256/15.76213.801 12.233/10.962|9.915 8.304 7.133|6.6616.246 5.554 4.999 0 5 9 0 0 3 0 1 2511 23129 192 1932 1 2 3 4 5 6% E3%84 182.9371384141775.474719 358 Future Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% 17% | 8% | 9% | 10% | 12% | 14% | 15% 1.0101.0201.0301.040 1.0501.000 1.0701.0801.0901.100]1.120]1.140]1.150 11.0201.0401.0611.08211.1031.1241.1451.166] 1.188]1.210] 1.254|1.30o1.323 1.0301.0611.0931.125]1.1581.191|1.225]1.260] 1.295]1.331]1.4051482]1.521 1.0411.08211.126]1.1701.2161.262]1.3111.360] 1.412]1.464|1.574|1.689]1.749 1.051]1.104|1.159]1.217|1.276l1.3381.4031.4691.539] 1.611]1.762|1.92512.011 1.0621.1261.194|1.2651.3401.4191.501]1.587|1.677|1.772]1.974|2.195]2.313 |1.0721.1491.2301.316l1.407|1.5041.606]1.714| 1.828]1.949|2.211|2.502]2.660 1.0831.17211.267|1.3691.477|1.5941.7181.851]1.993]2.144|2.476]2.8533.059 1.094|1.195]1.305]1.4231.5511.6891.8381.999|2.172|2.358|2.773|3.252|3.518 |1.1051.2191.3441.480] 1.629|1.791]1.967|2.159]2.367|2.594|3.106|3.707|4.046 [1.1161.243]1.384|1.5391.7101.89812.105/2.3322.580]2.8533.479]4.226]4.652 12 11.127|1.2681.426l1.601/1.796l2.012 2.2522.5182.8133.1383.896|4.818|5.350 11.138| 1.294[1.469|1.665|1.886|2.133|2.4102.7203.06613.452]4.363|5.492|6.153 14 11.149| 1.31915131.7321.980/2.261|2.579|2.937|3.342]3.798|4.887|6.2617.076 1.1611.346] 1.558|1.8012.079|2.397]2.759|3.172|3.642]4.177|5.4747.138|8.137 16 11.173]1.3731.605 1.873|2.183|2.540/2.9523.426] 3.97o|4.595|6.1308.137|9.358 11.184|1.400 1.6531.9482.292/2.6933.1593.700]4.32815.054 6.866|9.276] 10.76 1.196]1.4281.70212.02612.407|2.85413.3803.99614.717|5.560]7.690] 10.58] 12.38 19 11.208| 1.457|1.754|2.107|2.527|3.02613.6174.316l 5.142]6.116|8.613112.06| 14.23 20 1.220] 1.4861.806l2.191|2.653]3.207|3.870|4.661|5.604|6.727|9.646| 13.74| 16.37 11.2321.5161.860/2.279|2.7863.4004.141|5.034|6.109|7.400] 10.80] 15.67| 18.82 1.24511.5461.91612.37012.92513.60414.4305.437|6.659 8.14o|12.1017.86|21.64 1.257]1.5771.974|2.4653.072|3.820]4.74115.871|7.258|8.954| 13.55|20.36|24.89 11.2701.608]2.033l2.563]3.225]4.0495.0726.341|7.911]9.850] 15.18|23.21|28.63 1.2821.641|2.094|2.6663.38614.292|5.427|6.848] 8.623] 10.83] 17.00|26.46|32.92 26 11.2951.673/2.157|2.772/3.556|4.549|5.8077.396|9.399) 11.92 19.04 30.17|37.86 1.308 1.707|2.221|2.88313.73314.8226.214|7.988] 10.25] 13.11|21.32|34.39|43.54 11.32111.741|2.288|2.9993.9205.1126.649|8.627| 11.17|14.42|23.88|39.20 50.07 (1.335]1.776l2.357|3.1194.1165.4187.114|9.317|12.17|15.86|26.75|44.69|57.58 11.348] 1.8112.427]3.243]4.322)5.7437.61210.06 13.27|17.45|29.96| 50.95 66.21 40 11.489|2.208|3.2624.80117.040] 10.29|14.97|21.7231.41|45.26l93.05| 188.9|267.9 50 11.64512.69214.38417.107|11.47|18.42/29.46|46.9074.36] 117.4 289.0700.211,084 Future Value of Ordinary Annuity of $1 |Periods 1% | 2% | 3% 4% | 5% | 6% | 7% | 8% | 9% 10% 12% 14% 15% ] 11.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 12.010/2.020/2.030 2.040/2.050/2.0602.070|2.080/2.0902.100/2.120|2.140]2.150 3.0303.0603.091|3.12213.153]3.184] 3.215]3.2463.2783.310]3.374|3.440]3.473 4 14.060|4.122)4.1844.246|4.3104.375] 4.440 4.5064.573|4.641|4.7794.921|4.993 5 15.101|5.20415.3095.4165.526 5.637| 5.751 5.8675.985 6.105|6.353|6.6106.742| 6.15216.30816.4686.6336.802)6.9757.1537.33617.5237.7168.115|8.536|8.754 17.2147.4347.66217.8988.142|8.394| 8.654 8.923j9.2009.487|10.09110.73] 11.07 8.286|8.5838.892j9.214|9.549|9.897|10.26010.64| 11.03| 11.44| 12.30| 13.23|13.73 9 19.369|9.755110.16|10.58| 11.03|11.49| 11.98 12.49|13.02| 13.58| 14.78| 16.09] 16.79 10.46| 10.95| 11.46]12.01|12.58|13.18| 13.82|14.49 15.19|15.94|17.55] 19.34|20.30 11.57|12.17|12.81|13.49114.21|14.97| 15.78 16.65117.56] 18.53|20.65|23.04|24.35 12 |12.68|13.4114.19|15.03|15.9216.87| 17.89 18.98 20.14|21.38] 24.13|27.27j29.00 13 |13.8114.68|15.6216.63|17.7118.88| 20.14/21.50 22.95| 24.52 28.03 32.09 34.35 14 |14.95] 15.97|17.09| 18.2919.60|21.02] 22.55 24.21|26.02|27.98|32.39|37.5840.50] 16.1017.29118.60|20.02121.58|23.28| 25.13/27.15/29.36|31.77|37.28|43.84|47.58 16 117.26| 18.64|20.1621.82j23.66) 25.67| 27.89 30.32|33.00| 35.9542.75| 50.98] 55.72| 17 118.43 20.0121.76|23.70/25.8428.21| 30.84 33.75/36.97|40.54|48.88 59.1265.08 18 119.61|21.41|23.4125.65|28.13/30.91| 34.00 37.4541.30l45.60] 55.75|68.39| 75.84 20.81|22.84|25.12|27.67|30.54|33.76 37.38141.45146.0251.1663.44|78.97|88.21 22.02124.30126.87|29.78|33.07|36.79| 41.00|45.76l51.16] 57.2872.05|91.02 102.4 23.24|25.78|28.68|31.97|35.7239.99] 44.87 ]50.42 56.7664.00|81.70] 104.8] 118.8 124.47|27.30|30.54|34.2538.51|43.39| 49.01 55.46|62.87|71.40 92.50] 120.4|137.6 25.7228.85|32.45136.6241.43|47.00| 53.44|60.89|69.53] 79.54 104.6| 138.3] 159.3 26.97|30.42134.43|39.08144.50 50.82] 58.18 66.76l76.79] 88.50| 118.2|158.7| 184.2 128.24|32.03|36.46|41.65147.7354.86| 63.25173.11|84.70] 98.35| 133.3181.9|212.8 29.53|33.67|38.55144.31|51.11|59.16 68.68179.95|93.32| 109.2150.3208.3/245.7 30.82|35.34140.7147.0854.67|63.7174.48 [87.35102.7|121.1[169.4|238.5|283.6 32.1337.0542.93j49.97|58.40 68.53] 80.70 [95.34| 113.0| 134.2190.7|272.9327.1 29 33.45 38.79145.22l52.97|62.32J73.64| 87.35|104.00 124.1148.6l214.6312.1|3772 34.78140.57|47.58|56.08 66.44|79.06| 94.46[113.3136.3| 164.5|241.31356.81434.7 148.89|60.40| 75.40|95.03120.8154.8| 199.6l259.1337.9442.6767.1|1,342]1,779 64.46|84.58| 112.8152.7|209.3/290.3| 406.5 573.8815.11,164|2,4004,9957,218