Locos Company operates a chain of sandwich shops. (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) Plan A Average annual operating income 705,000 294,000 ARR 16.7 % $ Average amount invested 4,225,000 4,620,000 Plan B Caclulate the NPV (net present value) of each plan. Begin by calculating the NPV of Plan A. (Complete all answer boxes. Enter a "0" for any zero balances or amounts that do not apply to the plan. Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Plan A: Net Cash Annuity PV Factor PV Factor Present Years Inflow (i=10%, n=10) (-10%, n=10) Value 1-10 Present value of annuity 10 Present value of residual value Total PV of cash inflows Initial Investment Net present value of Plan A Loops Company operates a chain of sandwich shops. Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) Read the requirements. (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, XX) Amount invested Expected annual net cash inflow Plan A 8,450,000 1,550,000 Plan B 8,250,000 1,020,000 Payback 5.5 years 8.1 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 ARR Plan A S . 705,000 4,225,000 16.7 % Plan B 294,000 4,620,000 6.4 % Caciulate the NPV (not present value) of each plan. Begin by calculating the NPV of Plan A. (Complete all answer boxos. Enter a "O" for any zero balances or amounts that do not apply to the plan. Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative not present value.) More Info The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,450,000. 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, Locos Company would open three larger shops at a cost of $8,250,000. This plan is expected to generate net cash inflows of $1,020,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $990,000. Locos Company uses straight-line depreciation and requires an annual return of 10%. Print Print Done Done