Limes Company operates a chain of sandwich shops. i (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of table.) (Click the icon to view Future Value of $1 table.) Read the regquirements. (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 $ 8,600,000 1,550,000 5.5 years Plan B 8,300,000 1,070,000 7.8 years Calculate the ARR (accounting rate of retur More Info Plan A The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,600,000. 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, Limes Company would open three larger shops at a cost of $8,300,000 This plan is expected to generate net cash inflows of $1,070,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000. Limes Company uses straight-line depreciation and requires an annual return of 10%. Plan B Choose from any list or enter any number parts remaining Print Done un wN Reference -X Lim Present Value of $1 Rea Periods 1% 2% 3% 10% 12% 14% 15% 9% 0.926 0.961 0.943 0.925 0.907 0.890 0.873 0.857 4% 5% 6% 7% 8% 16% 18% 20 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.980 1 0.917 0.909 0893 0.877 0.870 0.862 0.847 0.8 0.842 0.772 0.708 0.650 0.826 0.797 0.769 0.756 0.743 0.718 06 0.751 0.712 0.675 0.658 0.641 0.609 0.5 0.683 0.636 0.592 0.572 0.552 0.516 0.4 0.621 0.567 0.519 0.497 0.476 0.437 0.4 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 4 3 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 Rec 0.564 0.507 0.456 0.432 0.410 0.370 0.3 0.513 0.452 0.400 0.376 0.354 0.314 0.2 0.467 0.404 0.351 0.327 0.305 0.266 0.2 0.424 0.361 0.308 0284 0.263 0.225 0.1 0.386 0.322 0270 0247 0.227 0.191 0.1 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.547 0.583 6 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 10 7 Cal 0.502 0.460 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 Pla 0.350 0.287 0.237 0.215 0.195 0.162 0.1 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0429 0.388 12 11 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 13 0.356 0.319 0.257 0208 0.187 0.168 0.137 0.1 0.229 0.182 0.163 0.145 0.116 0.160 0.141 0.125 0.099 0.0 0.140 0.123 0.108 0.084 0.0 Pla 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0 340 15 0.290 0.263 0.239 0.205 0.183 Cale 0.299 0.861 0.743 0.642 0.555 0.481 0.417 0362 0.853 0.728 0.623 0.534 0.458 0.394 0.339 17 0.315 0275 0 292 0.270 0.494 0.416 0.350 0.296 0 250 0.252 0.231 0.212 0218 0.163 0.146 0.130 0.116 0.104 0.123 0.107 0.093 0.071 0.0 0.108 0.095 0.081 0.069 0.051 0.0 0.083 0.070 0.060 0.043 00 0.073 16 0.093 0.080 0.060 00 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.836 0.700 0.587 0.198 0.180 0.164 Pla 18 19 Pla 0.828 0.686 0.570 0.475 0.396 0.331 0277 0 232 0.194 0.820 0.673 0.554 0.456 0.377 0.312 0 258 0.215 0.178 0.149 0.061 0051 0.037 0.0. 20 Print Done Cho 7 parts remaining Print Done N- Re 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 0.909 0.893 0.877 0.870 0.862 0847 08 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 3 1.736 1.690 1.647 1.626 1.605 1.566 1.5 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 2.1 3.902 3.808 3.717 3.630 3.546 3 465 3.387 3.312 3240 3.170 3.037 2.914 2.855 2.798 2.690 2.5 4.853 4.713 4.580 4.452 Re 5 4.329 4.212 4.100 3993 3.890 3.791 3.605 3.433 3 352 3274 3.127 2.9 5.795 5.601 5.417 5.242 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5 206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.6) 7.652 7.325 7.020 6.733 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5995 5.759 5.328 4.946 4.772 | 4.607 4.303 4.0 9.471 8.983 8.530 8.111 Ca 6 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.3 6.463 6210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.8 PI 10 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 | 5.019 4.833 4.494 4.1 7.139 6.805 6495 5.938 5453 5.234 5.029 4.656 4.3 5.197 4.793 4.4 10.368 9.787 9.253 8.760 8306 7.887 7.499 11.255 10.575 9.954 9.385 8.863 8.384 7.943| 7536 7.161 6.814 6.194 5.660 5.421 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7103 6.424 5.842 5.583 5.342 4.910 4.5 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.6 15 11 12 Ca 13 14 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6811 6.142 5.847 5.575 5092 4.6 PI 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6974 6 265 5.954 5.669 5.162 4.7 17 15.562 14.292 13.166 12.166 11.274 10.477| 9.763| 9.122 8.544 8.022 7.120 6.373 6047 5749 5.222 4.7 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7 250 6.467 6.128 5818 5273 4.8 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8950 8.365 7.366 6.550 6.198 5.877 5.316 4.8 19 18.046 16.351 14.877 13590 12.462 11.470 10.594 9.818 9129 8.514 7.469 6.623 6.259 5.929 5.353 4.8 20 16 Ch Print Done 7 Print Done N coNon un wN P26-31A (similar to) Question Help Limes C Reference - X (Clic Read the Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.030 1.040 1.050 1.020 1.040 1.061 1.082 1.103 3 1.060 1.070 1.080 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.090 1.100 1.120 1.140 1.150 7 1.323 1.030 1.061 1.093 1.125 1.158 1.191 1225 1260 1.041 1295 1.331 1.405 1.482 1.521 1.360 1.412 1.464 1.574 1.689 1.749 1.469 1.539 1.611 1.762 1.925 2.011 A 1.082 1.126 1.170 1.216 1.051 1.104 1.159 1.217 1 276 1.338 1.403 1.262 1.311 Require Calculate 1.062 1.126 1.194 1.265 1.340 1.072 1.149 1230 1.316 1.407 1.083 1.172 1.094 1.195 1.105 1.219 1344 1480 1.629 1.677 1.772 1.974 2.195 2.313 1.504 1.606 1.714 1828 1.949 2.211 2.502 2.660 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.689 1.838 1.999 2.172 2.358 2.773 3252 3.518 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 1419 1.501 1.587 7 1.267 1.305 1.369 1.477 Plan A 1.423 1.551 10 Plan B 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3479 4.226 4.652 1.127 1.268 1.426 1.601 1.796 2.012 2252 2.518 2.813 3.138 3.896 4.818 5.350 11 Calculate 12 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 1.161 1.346 1.558 13 14 15 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 Plan A 1.173 1.373 1.605 1.873 2.1832.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 1.184 1.400 1.653 1.948 2.2922.693 3.159 3.700 4.328 5.0546.866 9 276 1.196 1.428 1.702 2.026 2.407 2.854 3.380 1.208 1.220 16 Plan B 10.76 17 18 19 20 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 1.486 1.806 2.191 2653 3.207 3.870 3.996 4.717 5.560 7.690 10.58 12.38 14.23 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1860 2.279 2.786 3.400 4.141 5.034 6.109 7.400 10.80 15.67 18.82 Choose Print Done 7 parts remal Print Done P26 31A leimilar tol QuestionHeln - X Reference Limes C (Ci of $1 Read th Future Value of Ordinary Annuity of $1 9% 14% 15% 1.000 Periods 1% 2% 3% 4% 5% 6% 7% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 of $1 1.000 2.010 3.030 1.000 2.020 2.030 2.040 2.050 2.060 2070 2.080 2.090 2.100 2.120 2.140 2.150 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.3103.374 3.440 3.473 3 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 Require 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6.152 6 7.214 7 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03| 11.44 12.30 13.23 13.73 8 6.308 6.468 6633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 8.754 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 Calculat 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 Plan A 10 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 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12.68 Plan B 11 13.41 14.19 15.03 15.92 16.87 17.89 18. 98 20.14 21.38 | 24.13 27 27 29.00 12 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 Calcula 13 14.95 15.97 17.09 18.29 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37 28 43.84 47.58 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 14 19.60 21.02 2255 24.21 26.02 27.98 32.39 37.58 40.50 15 Plan A 16 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 17 19.61 2141 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75 84 Plan B 18 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88 21 19 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 Choose Print Done 7 parts remamg Print Done P26-31A (similar to) Question Help Limes Company operates a chain of sandwich shops. i (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 - X icon to view Future Value of S1 table) Requirements icon to view Future Value of Ordinary Annuity of $1 1. Compute the payback, the ARR, the NPV, and the profitability index of these two plans 2. What are the strengths and weaknesses of these capital budgeting methods? 3. Which expansion plan should Limes Company choose? Why? 4. Estimate Plan A's IRR, How does the IRR compare with the company's hese two plans. cash inflow Payback required rate of return? 5.5 years 78 years Done Print - X Plan A The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,600.000. 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. Limes Company would open three larger shops at a cost of $8,300,000 This plan is expected to generate net cash inflows of $1,070.000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000 Limes Company uses straight-line depreciation and requires an Plan B Choose from any list or enter any number in the inp annual return of 10% 7 parts remaining Limes Company operates a chain of sandwich shops. i (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of table.) (Click the icon to view Future Value of $1 table.) Read the regquirements. (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 $ 8,600,000 1,550,000 5.5 years Plan B 8,300,000 1,070,000 7.8 years Calculate the ARR (accounting rate of retur More Info Plan A The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,600,000. 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, Limes Company would open three larger shops at a cost of $8,300,000 This plan is expected to generate net cash inflows of $1,070,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000. Limes Company uses straight-line depreciation and requires an annual return of 10%. Plan B Choose from any list or enter any number parts remaining Print Done un wN Reference -X Lim Present Value of $1 Rea Periods 1% 2% 3% 10% 12% 14% 15% 9% 0.926 0.961 0.943 0.925 0.907 0.890 0.873 0.857 4% 5% 6% 7% 8% 16% 18% 20 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.980 1 0.917 0.909 0893 0.877 0.870 0.862 0.847 0.8 0.842 0.772 0.708 0.650 0.826 0.797 0.769 0.756 0.743 0.718 06 0.751 0.712 0.675 0.658 0.641 0.609 0.5 0.683 0.636 0.592 0.572 0.552 0.516 0.4 0.621 0.567 0.519 0.497 0.476 0.437 0.4 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 4 3 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 Rec 0.564 0.507 0.456 0.432 0.410 0.370 0.3 0.513 0.452 0.400 0.376 0.354 0.314 0.2 0.467 0.404 0.351 0.327 0.305 0.266 0.2 0.424 0.361 0.308 0284 0.263 0.225 0.1 0.386 0.322 0270 0247 0.227 0.191 0.1 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.547 0.583 6 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 10 7 Cal 0.502 0.460 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 Pla 0.350 0.287 0.237 0.215 0.195 0.162 0.1 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0429 0.388 12 11 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 13 0.356 0.319 0.257 0208 0.187 0.168 0.137 0.1 0.229 0.182 0.163 0.145 0.116 0.160 0.141 0.125 0.099 0.0 0.140 0.123 0.108 0.084 0.0 Pla 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0 340 15 0.290 0.263 0.239 0.205 0.183 Cale 0.299 0.861 0.743 0.642 0.555 0.481 0.417 0362 0.853 0.728 0.623 0.534 0.458 0.394 0.339 17 0.315 0275 0 292 0.270 0.494 0.416 0.350 0.296 0 250 0.252 0.231 0.212 0218 0.163 0.146 0.130 0.116 0.104 0.123 0.107 0.093 0.071 0.0 0.108 0.095 0.081 0.069 0.051 0.0 0.083 0.070 0.060 0.043 00 0.073 16 0.093 0.080 0.060 00 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.836 0.700 0.587 0.198 0.180 0.164 Pla 18 19 Pla 0.828 0.686 0.570 0.475 0.396 0.331 0277 0 232 0.194 0.820 0.673 0.554 0.456 0.377 0.312 0 258 0.215 0.178 0.149 0.061 0051 0.037 0.0. 20 Print Done Cho 7 parts remaining Print Done N- Re 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 0.909 0.893 0.877 0.870 0.862 0847 08 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 3 1.736 1.690 1.647 1.626 1.605 1.566 1.5 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 2.1 3.902 3.808 3.717 3.630 3.546 3 465 3.387 3.312 3240 3.170 3.037 2.914 2.855 2.798 2.690 2.5 4.853 4.713 4.580 4.452 Re 5 4.329 4.212 4.100 3993 3.890 3.791 3.605 3.433 3 352 3274 3.127 2.9 5.795 5.601 5.417 5.242 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5 206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.6) 7.652 7.325 7.020 6.733 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5995 5.759 5.328 4.946 4.772 | 4.607 4.303 4.0 9.471 8.983 8.530 8.111 Ca 6 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.3 6.463 6210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.8 PI 10 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 | 5.019 4.833 4.494 4.1 7.139 6.805 6495 5.938 5453 5.234 5.029 4.656 4.3 5.197 4.793 4.4 10.368 9.787 9.253 8.760 8306 7.887 7.499 11.255 10.575 9.954 9.385 8.863 8.384 7.943| 7536 7.161 6.814 6.194 5.660 5.421 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7103 6.424 5.842 5.583 5.342 4.910 4.5 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.6 15 11 12 Ca 13 14 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6811 6.142 5.847 5.575 5092 4.6 PI 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6974 6 265 5.954 5.669 5.162 4.7 17 15.562 14.292 13.166 12.166 11.274 10.477| 9.763| 9.122 8.544 8.022 7.120 6.373 6047 5749 5.222 4.7 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7 250 6.467 6.128 5818 5273 4.8 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8950 8.365 7.366 6.550 6.198 5.877 5.316 4.8 19 18.046 16.351 14.877 13590 12.462 11.470 10.594 9.818 9129 8.514 7.469 6.623 6.259 5.929 5.353 4.8 20 16 Ch Print Done 7 Print Done N coNon un wN P26-31A (similar to) Question Help Limes C Reference - X (Clic Read the Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.030 1.040 1.050 1.020 1.040 1.061 1.082 1.103 3 1.060 1.070 1.080 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.090 1.100 1.120 1.140 1.150 7 1.323 1.030 1.061 1.093 1.125 1.158 1.191 1225 1260 1.041 1295 1.331 1.405 1.482 1.521 1.360 1.412 1.464 1.574 1.689 1.749 1.469 1.539 1.611 1.762 1.925 2.011 A 1.082 1.126 1.170 1.216 1.051 1.104 1.159 1.217 1 276 1.338 1.403 1.262 1.311 Require Calculate 1.062 1.126 1.194 1.265 1.340 1.072 1.149 1230 1.316 1.407 1.083 1.172 1.094 1.195 1.105 1.219 1344 1480 1.629 1.677 1.772 1.974 2.195 2.313 1.504 1.606 1.714 1828 1.949 2.211 2.502 2.660 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.689 1.838 1.999 2.172 2.358 2.773 3252 3.518 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 1419 1.501 1.587 7 1.267 1.305 1.369 1.477 Plan A 1.423 1.551 10 Plan B 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3479 4.226 4.652 1.127 1.268 1.426 1.601 1.796 2.012 2252 2.518 2.813 3.138 3.896 4.818 5.350 11 Calculate 12 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 1.161 1.346 1.558 13 14 15 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 Plan A 1.173 1.373 1.605 1.873 2.1832.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 1.184 1.400 1.653 1.948 2.2922.693 3.159 3.700 4.328 5.0546.866 9 276 1.196 1.428 1.702 2.026 2.407 2.854 3.380 1.208 1.220 16 Plan B 10.76 17 18 19 20 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 1.486 1.806 2.191 2653 3.207 3.870 3.996 4.717 5.560 7.690 10.58 12.38 14.23 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1860 2.279 2.786 3.400 4.141 5.034 6.109 7.400 10.80 15.67 18.82 Choose Print Done 7 parts remal Print Done P26 31A leimilar tol QuestionHeln - X Reference Limes C (Ci of $1 Read th Future Value of Ordinary Annuity of $1 9% 14% 15% 1.000 Periods 1% 2% 3% 4% 5% 6% 7% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 of $1 1.000 2.010 3.030 1.000 2.020 2.030 2.040 2.050 2.060 2070 2.080 2.090 2.100 2.120 2.140 2.150 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.3103.374 3.440 3.473 3 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 Require 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6.152 6 7.214 7 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03| 11.44 12.30 13.23 13.73 8 6.308 6.468 6633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 8.754 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 Calculat 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 Plan A 10 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 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12.68 Plan B 11 13.41 14.19 15.03 15.92 16.87 17.89 18. 98 20.14 21.38 | 24.13 27 27 29.00 12 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 Calcula 13 14.95 15.97 17.09 18.29 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37 28 43.84 47.58 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 14 19.60 21.02 2255 24.21 26.02 27.98 32.39 37.58 40.50 15 Plan A 16 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 17 19.61 2141 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75 84 Plan B 18 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88 21 19 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 Choose Print Done 7 parts remamg Print Done P26-31A (similar to) Question Help Limes Company operates a chain of sandwich shops. i (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 - X icon to view Future Value of S1 table) Requirements icon to view Future Value of Ordinary Annuity of $1 1. Compute the payback, the ARR, the NPV, and the profitability index of these two plans 2. What are the strengths and weaknesses of these capital budgeting methods? 3. Which expansion plan should Limes Company choose? Why? 4. Estimate Plan A's IRR, How does the IRR compare with the company's hese two plans. cash inflow Payback required rate of return? 5.5 years 78 years Done Print - X Plan A The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,600.000. 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. Limes Company would open three larger shops at a cost of $8,300,000 This plan is expected to generate net cash inflows of $1,070.000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000 Limes Company uses straight-line depreciation and requires an Plan B Choose from any list or enter any number in the inp annual return of 10% 7 parts remaining