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Lolas Company operates a chain of sandwich shops /Click the loon to view addltional information. Read the requieet (Cick the ioon to view Present Value

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Lolas Company operates a chain of sandwich shops /Click the loon to view addltional information. Read the requieet (Cick the ioon to view Present Value of S1 table.) (Cick the icon to view Present Value of Ordinary Armuity of $1 tabie.) More Info Requirement 1. Compute the payback, the ARR, the NPV, and the profitablity index of these two plans. Calouiate the payback for both plans. (Round your answers to one decimal place. x.X The company is considering two possble exparsion plans. Plan A would apen oight smaler shops at a cost of $8,450,000. Expected antual net cash inflows are $1,550,000 for 10 years, with zero residual value at the end of 10 years Under Pian B, Loas Company would open three larger shops at a cost of $8,300,000 This plan is expected to generate net cash inflows of $1,020,000 per year for 10 years, the estreated uneful ?fo of the properties Estrated read-value for Pan Payback Plan A Plan Calculate the AAR (accorang rate ofretum) tr bot, purs Round your answers tore nearest tent, percent, XX%) years is $1,000,000. Lolas Company uses straight-ne depreciation and requires an armual retum of ARR Plan B Print Done Cackulate the NPV (net present value) of each plan. Begin by calculating the NPV of Plan A. (Complete all answer boxes. Enter a "0 for places, X30OX. Use parentheses or a minus sign for a negative net present value) any zero balances or amounts that do not apply to the plan Enter any factor amounts to thre Plan A Net Cash Annuity PV Factor PV Factor Present Choose from any list or enter any number in the irput fields and then continue to the next

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