Leches Company operates a chain of sandwich shops.

compute the payback, the ARR, the NPV, and the profitability index of these two plans.

(Click the icon to view Present Value - X More Info The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,425,000. 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, Leches Company would open three larger shops at a cost of $8,000,000. This plan is expected to generate net cash inflows of $1,080,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $990,000. Leches Company uses straight-line depreciation and requires an annual return of 8%. Print Done