Lolas Company operates a chain of sandwich shops (Click the icon to view additional Information) Road the requirements (Click the bon to view the Valls (Click the con lower) Ce the conto Future Value of table) (Click the icon to view Future Verdanya) Requirement 1. Compute the payback, the ARR the NPV and the proftability index of these two plans Calculate the payback for both plans. (Round your users to one decimal place XX) Plan A Plan B Payback years years Choose from any list or enter any number in the input lields and then click Check Answer Clear All Check AWET 8 parts remaining More Info Chico Busan Ordinary Annuity of Silable) - X 51 table Ordinary Annuity of State) Requirement 1. Compute the payba Calculate the payback for both plans The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of 58,550,000. Expected annual net cash inflows are $1,625,000 for 10 years, with zero residual value at the end of 10 years Under Plan B, Lolas Company would open three larger shops at a cost of 58,250.000 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 $1,000,000. Lolas Company uses straight-line depreciation and requires an annual return of 10% Plan A Plan B Print Done oose from any list or enter any number in the input fields and then click Check Answer Ordinary Annuity of Stable nent 1. Compute the payba the payback for both plans 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 Lolas Company choose? Why? 4. Estimate Plan A's IRR How does the IRR compare with the company's required rate of return? irem late Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% Period 1 10% 12% 0.990 0.980 0.971 0.962 0 952 14% 159 16% 10% 20% 0.943 0.935 Period 2 0.925 09170.9090.893 0877 0.870 0.362 0347 0830 0.9800.961 0.943 0.925 0.9070.890 0873 0.857 0842 0826 0.797 0.750 0.756 0.7430718 0694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0794 0.772 0.750 0.712 0675 0.658 0541 0009 0579 Period 4 0961 0.924 0.888 0.856 0.823 0.792 0.763 0735 0708 06830636 0.582 0.5720552 05160482 Period 5 0 951 0.906 0.863 0.822 0.784 0.747 0,713 0.681 0 650 0621 0.567 0.519 0.497 04780437 402 Period 6 0.942 0.888 0 837 0.790 0.745 0.705 0.656 0630 0.596 0.564 0.507 0456 0.432 04100370 0355 Period 7 0933 0 871 0.813 0.750 0.711 0.6660.623 0583 0.547 0.5130452 0.400 0.376 0354 0314 0279 Period 8 0.923 0.853 0.789 0.731 0.6770 627 0.6820540 0.502 04670404 0351 0.327 03050256 0233 Period 9 0914 0 837 0.766 0.7030645 05920544 0.500 0.480 0424 0,361 0.308 0.284 0263 0225 0194 Period 10 0 905 0.820 0.744 0.678 0.614 0.558 05080463 04220388 0.3220270 0247 027 0.191 0182 Period 11 10.896 0.8040.722 0.650 0.585 05270475 0.429 0388 0.3600287 0.2370215 0.1950.162 0 135 Period 12 0887 0.7880.701 0625 0.567 0.497 0.444 0 397 0.356 0.319 0.257 0.209 0.187 0.1680.127 0.112 Period 13 0.879 0773 0.681 0.601 0.530 0.46904150368 0.326 0 2900229 0.182 0.163 0.145 0.116 0093 Period 14 0 870 0 7580 661 0.677 0505 0.44203880 340 0299 0263 0205 0 160 0.141 0.125 0099 0.078 32 1 216 1 275 120 121 122 Inte na Deriod. 15 Intl 743 In 42 10555 1 481 1417 ad the quirem culate Period 15 0.861 0,743 0542 0.556 0.481 0.41703620315 02750239 0.183 0.140 0.123 01080054 006 Period 15 0.853 0.7280.623 0534 0.458 0.394 Period 17 0.844 0714 0.605 05130436 0.371 0.3170.270 0231 0.1980.146 0108 0.090 0000 0.000045 0.339 0.292 02520213 0.163 0123 0.1070099007005 Period 18 0.836 0.7000.587 0.4940416 0.350 Period 19 0828 0.686 0.570 0.475 0.396 0.331 0296 0.250 0212 0.180 0.1300095 0081009 0.0610036 0277 Period 20 0.820 0.673 0.564 0.456 0.3770.312 0.258 0215 0.1780 1490 1040073 006100510037 036 0232 0 1940.1640.116 0.083 0OTO 0050000001 Period 21 0.8110660 0.538 0.439 0.359 0.294 0.242.1990.164 0.136 0.093 0.054 0.053 0.04 0.001 0.022 Period 22 10.8030.547 0.522 0.422 0.342 02780226 0.184 0.150 0.123 0.003 0.056 0046 00380026 0011 Period 23 0.795 0.634 0.507 0.4060.326 0.262 0211 0 170 0.138 0.112 0.0740049 0.040 0.033.022 0015 Period 24 10.7880.6220 4920 390 0.310 0 247 0.197 0.168 0.125 0.102 0.066 0.0430035 0.0200019 0913 Period 25 0.780 0.610 0.4780 375 0.295 1 0 233 0.184 0.146 0.116 00920 059 0.038 0.0300024 0010 0010 Period 26 0.772 0598 0464 0.361 0.281 0220 0.1720 135 0.106 0.04 0.053 0.033 0.026 0021 00140.000 Period 27 0.784 0586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 00760047 0.029 0.023 0018 0011 0007 Period 28 0.757 0.574 0.4370 333 0.255 0.1960.150 0.116 0.090 0.0690042 0.028 0.0200.016 0010 0005 0.141 0.107 0.082 0.063 0.037 0.02200170014 0.008 0.005 Period 29 0.7490.563 0424 0.321 0.243 0.185 0.099 0.075 0.057 0.033 0.0200015 0.012 0.007 0.004 Period 30 0.742 0.562 0.412 0.308 0.231 0 1740.131 B al 2 om te Present Value of Ordinary annuity of 51 Penods 1% 2% 3% 4% 6% Period 1 7% 0.990 0.980 8% 9% 10% 12% 14% 15 0.971 0962 0.952 0943 0.935 0926 0917 0.909 0.893 0 877 0.870 0362 0M70833 16 10% 20% Period 2 1.970 1.942 1913 1.886 1869 1833 1808 1783 1759 1738 1690 1647 1626 1605 1666 1522 Period 3 2.941 | 2 884 2.829 2775 2723 2673 2624 2577 2531 2487 2402 2322 223 224 274 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.466 3.387 3.312 32403.170 3.037 2964 2055 2.799 2000 2589 Period 5 4.853 4.713 4.580 4 452 4329 4.212 4.100 3993 3.890 3.791 3.605 3.433 3352 3274 2127 2991 Period 6 5.795 5.601 5.417 5.242 6.076 4917 4.7674 623 4 486 4366 4.111 3.389 784 3.685 3.490 2320 Period 7 6.728 6.472 6.230 6.002 5.786 5582 5.3895206 503348684564 4288 4.180 4039 3112 1505 Period 8 7.6527325 70206.733 6.463 6210 6971 6747 6.5356335 4.908 4639 4487 4344 40783337 Period 9 8.566 8.162 7.786 74367 108 6 802 6.5156247 5.996 5759 5.3284945477246074309 4031 Period 10 9.471 8.983 8.530 8.111 7.722 736070246.710 6418 614556505.216 50194 833 4.4944152 Period 11 10.368 | 9787 9.253 8.760 83067.887 749971396.805 6.496 5938 6.453 5234 5.029 4550 4327 Period 12 11.255 10.575 9.954 9.3858.863 8 384 7.943 7638 7.1616.814 6194 5.660 5421 5.197 793 4439 Period 13 12:134 11 348 10.635 9.986 9.394 8 853 8 358 7.904 7487 7.103 6.42468426583 5342 4910 4633 Period 14 13 004 12:106 11.296 10.563 9.899 9.296 8.745 8.244 7.78673676.62860025.7246468 6.0084611 Deriod 15. 113.865 12.840111038.11.119 1.10.2012 1911 1.8.559 18 061 76016811 1 14958475575 5.092 14.675 Requirem Calculate Period 15 13.865 12 849 11938 11.118 10.380 9.712 9.108 8.569 8061 7506 6.811 6.142 5541 5575 1.094675 Period 16 14.718 13.578 12.561 11.652 10 838 10.106 94478851 8.313 7.82469746265 5954 6.909 5.162 470 Period 17 15,562 14.292 13.166 12 168 11.274 10.477 9763 9.1228544 3.02271206.373 6047 574 572 4775 Period 18 16.398 14.992 13.754 12650 11.690 10 828 10.05993728.756 8.2017.250 6.467612868185273 4112 Period 19 17 226 15678 14.324 13.1341208511.150 1033696048.9508 365 7.36665606.19858775316 454 Period 20 18.046 10.361 14 87T 13.500 12.462 11470) 10.5949.818 8.129 851474696623 62505529636 Period 21 18 857 17 011 15.41514029 1282111764 10836 10.0179292 8.64975626.687 6.312 5973 53844191 Period 22 19.660 1765815.937 14 451 13.763 12.042 11 061102019.442 3772 7545 6743635950115410 4900 Period 23 20.456 18 292 | 16 444 14 857 13.489 12 303 11 272 10.371 95808 883771567926399 804 54324905 Period 24 21.24318.914 16.938 15 247 13.799 12 550 11.459 10.5289.7078.9857.784 6835 6.4346073 5451 4937 Period 25 (22.023 19 523 17 413 15.622 14.094 12 783 11654 106750823907778436.873 545460275457 418 Period 26 22796 20 121 17 87T15983 14375 13 003 11 826 10.810 9.929 9.1617.8966.906 6.491 5.118 5480 4956 Period 27 23 680 20.707 18.327 16.330 14.843 13.211/1198710 935 10.027 923779438935 5.614 6136 5:492 496 Period 28 24 316 21.28118.764 16.663 14.898 13 408 12. 137 11.051 10.116 9307 79846981 6.6446.152 6502 4970 Period 29 25.06621 844 19 188 16984 15.141 13 591 12 278 11.158 10 198 9370802269838.5516.186 5510 975 Period 30 25 80822.39619.600 17 292 15.37213.766 12 4091.253 10.274 9.427 6.055 7000 6.6666.1775517 4919 nr. BAS Al lan A an 8 . ose frd REI ble equirem lculate Period 17 15 562 14.292 13.102 106 11 274 10471 0.763 9.122 8,544 3.02271206.370 60175749 522 775 Period 18 16 398 14.992 13.754 12659 11.690 10 828 100699372 8.7568.201 72506467 6123 5818 527 4812 Period 19 17.226 15.678 14.324 13.13412085 11.158 10 336 9.604 8950 8.365 7386 6560 6190 ST 5310 Period 20 18.046 16.351 14 877 13.590 12.462 11470 105949818 9.129 8514 7469 6623 5250 590 53594170 Period 21 18.857 17 011 15.415 14.029 12821 11.764 10836 10.017929285497562 6.587 6312597534 Period 22 19.660 17.658 15,937 14.451 13.163 12.042 11 061 10 2019.442 8.772 7645 6743 6359 601 5.410 4900 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11 272 10.371 9580 8883 7718679263996.04 5424925 Period 24 21 24318 91416 936 15.247 13.79912 560 11460 10.529 9.707 8.985 7784 6835 6.434 or 5.451 4917 Period 25 22.023 19.523 17 413 15.622 14.094 12.783 11654 10.675 9.8239.077 7843 68736454 6097 5467 1968 Period 26 22.795 20.121 17.877 15.983 14.375 13.003) 11.826 10.810 9.929 91617896 6.906 6491 6.110 54804966 Period 27 23.560 20.707 18.32716.330 14.843 13.211 11.987 10.935 10.027 92377.943 6935 6.514 6136 5402494 Period 28 24.31621 281 18.764 16.663 14.898 13.406 12 137 11051 10.116 9.307 7.984 6951 6534 815255024570 Period 29 25.086 21.844 19 188 16,984 15.141 13.591 12.278 11.158 10.1989370802269036.661 8.166 65104975 Period 30 25.80822398 | 19.600 17 292 15.372 13.766 12.409 11.258 10.2749.4278055 7.003 6566 6.1775517 4979 Period 40 32.835 27 355 23 115 19.793 17.159|15.045 13.33211926 10.75797798 244 7.105 | 5642 6233 5543 4957 Period 50 39.1963142425.730 21.492 18 256 15.762 13.80112239 10.962 9915 8.304 7.133 6561 62465554 2995 an A an B ol 12% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1061 ofs nt 1.ca e paybe 1062 1.072 1083 1.094 1.105 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Deriod 15 Future Value of $1 2% 39 4% 5% 6% 3% 9% 10% 1020 1.030 1.040 1.050 1.050 1.070 14% 15% 1.080 1.090 1.100 1.120 1.140 1.150 1.040 1.061 1.0821.103 1.1241145 1.1661.18B 12101 254 1300 1323 1.061 1.093 1.125 1158 1.1911225 1260 12951331 1.405 1482 1521 1.082 1.126 | 1170 1216 | 1.2621.311 1.360 1412 1.454 1574 1669 17 1.104 1.15912171276 1.338 1.403 1.4691539 16111762 1925 2011 1.126 1.1941.265 1 340 1419 1601 1687 1677 1772 1974 2196 2213 1.149 1 230 1.316 1.407 1.5041 608 1714 1828 1949 2211 2502 2660 1.172 1267 1.36914771.594 1718 1.851 1.993 2144247628533060 1.195 | 1.305 1423 1651 1689 1838 1.999 2172 2358 277332522618 1219 1.344 14801162917911.967 2 159 2.3672594 3.106 3.707 2016 1.243 1384 | 1539 1.710 | 1.899 2.105 2332 2580 2.8533 479 4225 23652 1 268 1426 1601 1.796 2012 2.252 2518 2893 31393.896 4818 5350 1 294 1489 1 665 1886 2.133 24102 720 3.056 3452 363 5.4925 163 1.319 15131732 | 1980 2261 2 579 2.937 3 342 3.799.387 16.25076 1226 1668 1 270 2.207275013179 12.67 AT 1 R17 1118 1.127 1.138 1149 1.11 - 1.161 1.173 1.184 1.196 1 208 1.220 at 1. Co paybe Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 1.232 1.245 1.257 1.270 1.282 1.295 1.308 1321 1.336 1.348 1.345 1.558 1.801 2079 23972759 3.172 3.842 4.177 5414 7.133 6 137 1.373 1605 1.8732183 2.54029523426 3.970 4.5966.130 8.1379.358 1.400 1.653 1.948 2292 2693 3.1593.700 4328 5.054 5886 927610 76 1.428 1.7022026 2.407 2854 3.390 3996 4717 6560 7680 10.58 123 1.457 1.754 2.107 2.527 3.0263617 4 316 5 1426.116 8.613 1206 14.23 1.486 1.806 2.191 2.653 3.2073.870 4661 5.604 6721 9848 14 16 37 1516 1.860 2279 2786 3.400 4.141 5034 6.109 7.400 1080 151 10.52 1.546 1.916 2370 2.925 3.604 4.430 5.437 6.669 8.140.12.10 17.86 2164 1.577 1.9742465 3.0723820 4.741 5.871 | 7.258 8954 13.55 2036 24 B9 1.608 2.0332563 3.225 4.049 5.072 6.341 79119.850 15.18 23:21 28.63 16412094 2 866 3386 4.292 5.4276.848 8.623 | 10.83 1700 12546 3292 1.673 2 157 2772 3 556 4.549 5.80773959.399119219030 17 37 86 1.707 2.221 2 883 3.733 4.822 6.214 7988 10 25 13.11 21 32 339354 1.741 2289 2.999 3.920 5.112 6.649 3.627 11.12142 23.883920 8001 1776 2357 3.119 4.116 5.418 7.114 9317 12 17 15.86 26.75 489257 58 1 811 2.427 3.243 4.322 5.743 7612 10.06 13:27 17.45 29.96 50 95562 an AAA n.con TO of State 10 Stable) ement 1.ca te the paybe Period 17 Period 15 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 11B41400 1653 1.948 270 2.00 3.109 3.700 432860546886 276 10.76 1.196 1428 1702 2.026 27 28543.380 39964717 5560700 1050 12.30 1.208 1457 1754 2.10757 3.026 36174316 5.1426.116 3.613 12.06 1423 1220 1486 1 306 2 191 2053 32073870 4561 6,604 6727 9.646 1374 1637 12321516 900 2.279 2786 3.400 4141 6034 6.109 7400 1000 1567 10.2 1.245 1.546 1916 2370 2925 3.604 4.430 6.4376659 8140 12.10 1786 2154 1 257 1.577 1974246530723.820 474 68717.258 8.964 1356 2036 249 1.270 1.6082033 2563 3225 4049 5072 8.341 7911 9.550 15 18 23 21 2863 1 282 16412094 2666 3386 4 292 5.4276.848 8.623 1083 17.00 2546 3292 1.295 1.673 2157 2772 3.566 4549580773969399 1192 19:04 30 17 37.86 1308 1.707 22212883 3.733 4822 6214 7.988 10 25 13.11 21.32 3439 354 1.321 1.741 2288 2999 3.920 5.112 6649 862711.17 14.4223.88 3920 50.07 1.335 1.776 2357 3.119 4.116 5.418 7.1149.317 12.17 15.66 2675 4469 57 58 1348 1.811 2427 3243 4.322 6.743 7612 10.06 13 27 17.45 2996 5096 6621 1.4892208 3.2624 801 7.040 10 29 14 97 21723141 45.26 93.05 18892079 1.645 2.6924384 7.107 11:47 1842 29 48 48.9074,38 1174 2890 700.21.084 Period 50 from any of $1 tak 12 Periods Period 1 Period 2 Period 3 Period 4 Period 5 at 1.ca of S1 table e paybe Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 period 15 Future Value of Ordinary Annuity of $1 1% 2 4% 5% 6% 796 8% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 9 10% 10% 15% 2010 2020 2030 2040 2050 2060 2070 2.080 2090 2100 2120 2.140 2150 30303.0603.091 3.122 3.153 3.1843.215 3.246 3.278 3.310 3.374340 3473 40604122 4.1844 246 4310 4.375 4440 45084.573 4541 477949214983 5.101 | 5 2045 309 6.416 552656375.751 5.867 5.985 6.1056353 6610 8742 6.152 6.308 6.468 6.633 88026.9757.1637.336 7523 7716 8.115 a 536 754 7.214 7.434 76627.898 8.1428 394 8.654 8.9239.2009.487 10.09 10.73 1107 8 288 8.5838.89292149.549 9.897 10 260 10 64 1103 11.44 1230132317 9.369 | 9.755 10 16 10.58 11 03 11.49 11.98 1249130213 58 | 14.78 16 0918 10.46 10.95 146 1201 12.58 13.8 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 1666 17 58 18.53 2065 23.0424 35 12.68 | 13.41 14 19 15.03 15.92 16 87 | 17 89 18.98 20 14213824.13 2727 2900 13.81 14.68 15.62 16.63 17.7118.88 20 14 21 60 22.95 24 52 28.03 3209 3435 14.95 | 15.97 17.0918.2919.6021 02 22.56 24 21 25 02 27.98 3239 37 58 | 20:50 16 10 17.291 18.01.20.02.1.215.23.28. 25.12.27.15 1.20 26 3177 1.37 TBA uurem of Sita 51 table Requirement 1. Co Calculate the payb Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 16.10 17.29 1860 2002) 21.58 29 28 25.13 2715 2936 31.77 3120 34 17 26 18.64 20.16 21.B2 23,66 25.67 27892032 33.00 3595 42.75 5098 5572 18.43 20.01 21.76 2370 2584 2821 30.84 33.75 38 974054 483 99,12 5505 19.61 2141 23.41 25 65 28.13 30.91 34 00 37 45 4130 4550 56 75 00207584 2081 2284 25.12 27.67 30 54 3376 37 38 41 45 45.02 51.15 634 TOT 21 22.02 24 30 25 872978 39 073679 41.00 45.75 5116 5728 72059101024 23 24 25.7828 68 3197 3572 39 90 4487 50 42 5678 6400017010481 24.47 27 30 30.543425 3051 4339490166466287 7140 S50 12041376 2572 28.85 3245 3662 41 43 470063.400 39 69 5379541046 183193 26.9730 42 34 43 39 0844505082 58.1966 78 76.79 3850118 2 15871542 28.243203 36 46 41 6547735436 6325 73.11 84.70 9835 1833 18192123 29.53 33.67 33.56443151.159.18 68.68 79.95 $332109 21503200367 30.82 35.3440714708 54 67 63.717448 87 35 102.7 1211159423852838 32.13 3705 42.93 4997 68.4068 53 80.70 95.34 1130 134 2190.7 27293271 33.45 38.794522 52.97 6232736487.35 1040 1941 1486 2140 3121 3772 34 78 | 40.57 47,5856.08 68.44 79.06 94 46 1133 136,3 1646 2413 35684347 Plan A Plan B Period 26 Period 27 Period 28 Period 29 Period 30 a me requirem of S1 tab of 51 tabl Requirement 1.ca Calculate the payba Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 period 28 Period 29 Period 30 Period 40 18:43 20101 21.76 23.70 25.84 28.21 30 84 33.75 36.97 40.544888 6.12 660 19.61 21.41 23.41 2565 28.13 30.9134.00 37.45 41,30 45.60 5675 68.39 75.84 20.81 2284 25.12 27.67 30.54 33.76 37 38 4145 46.02 5116 63.44 78.97 821 22.02 24 30 26.87 29.7833.07 3679 41.00 45.78 51.16 5728 7206 9102 1024 23 24 25 78 28 68 3197 35.72 39.99 4497 50 42 5678 6400 17010431183 24.47 27 30 30.54 34 25 385 43 39 4901 55 45 62 87 7140 9250 120 41326 25 72 28.8532 45 36.62 41 43 4700 53.4460.09 69 5379541045 1231593 26.97 30.42 34.4339.08 44 50 50 1258.1806.7676798350110215871542 28.24 32.03 36 46 41 66 4773 54.86 03 25 73.11047098 3513332128 29.53 33.6738.65 44 3151.159.16 68 68 79.96 93 32 1092 150 3 200 32457 30 82 35.34407147.08 54.6763.717448 87 35 1027 121.1 1894 2385 2835 32.13 37.05 42 93 49.97 68 40 68.53 80.70 95 34 1130 134.2 190.7 2729 2271 33.45 38.79 45 22 52.97 62.327364 87 35 1040 1241 148.6 2146 312.1 1772 34.78 4057475856 0966.44 7908 9446 1133 138,3 164.52413 3568047 49.8960.4075,40950912081548 199.6. 2591 3379 442676711,3421779 84 468458 11281527 209.3290.3 4066 573 8 815.11.164 2.400 49957.218 Plan A Plan B Period 50