Lolas 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 ion to view Present Value of Orinary 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. ..) Payback Plan A Plan B Calculate the ARR (accounting rate of return) for both plans. years years Round your answers to the nearest tenth percent, X X% ARR Plan A 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 "O for any zero balances or amounts that do not apply to the plan. Enter any factor amounts to three decimal places, X.XxXx. Use parentheses or a minus sign for a negative net present value.) Net Cash Inflow Plan A: Annuity PV Factor PV Factor Present Years 1-10 10 (i-796, n-10) (i=796, n=10) Value Present value of annuity Present value of residual value Total PV of cash inflows 0 Initial Investment Net present value of Plan A Calculate the NP of Plan B Complete all answer boxes. 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 minus sign for a negative net present value.) Use parentheses or a Plan B: Net Cash Annuity PV Factor PV Factor Present Years 1-10 10 Inflow (i-796, n-10) 57%, n-10) Value Present value of annuity Present value of residual value Can be used to assess profitability, but it ignores the time value of money. It allows us to compare altemative investments in present value terms and it also accounts for differences in the investments' initial cost. It has none of the weaknesses of the other models Requirement 3. Which expansion plan should Lolas Company choose? Why? Lolas Company should invest in because it has a payback period, a ARR, a net present value, and a Requirement 4. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? The IRR (internal rate of return) of Plan A is between profitability index. This rate! d the company's hurdle rate of 7%. 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 $1,600,000 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 $8,150,000. This plan is expected to generate net cash inflows of $1,050,000 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 7%. Print Done Reference 8 0.923 0.853 0.789 0.7310.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.3270.3050.266 0.233 9 0.914 0.837 0.766 0.7030.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.2840.2630.225 0.194 10 0.905 0.820 0.744 0.676 0.6140.558 0.508 0.463 0.422 0.386 0.322 0.270 0.2470.2270.191 0.162 11 0.896 0.804 0.722 0.650 0.5850.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.1950.162 0.135 12 0.887 0.788 0.701 0.625 0.5570.497 0.444 | 0.397 0.356 0.319 0.257 0.208 0.187 0.1680.137 0.112 13 0.879 0.773 0.681 0.6010.5300.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.1450.116 0.093 14 0.870 0.758 0.661 0.5770.5050.442 0.388 0.340 0.299 0.263 0.205 0.160 0.14 0.1250.099 0.078 15 0.861 0.743 0.642 0.555 0.4810.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.1080.084 0.065 16 0.853 0.728 0.623 0.534 0.4580.3940.339 0.292 0.252 0.218 0.163 0.123 0.1070.0930.071 0.054 17 0.844 0.714 0.605 0.513 0.4360.3710.317 0.270 0.231 0.198 0.146 0.108 0.093 0.0800.060 0.045 18 0.836 0.700 0.587 0.494 0.4160.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.0690.051 0.038 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.0600.043 0.031 20 0.820 0.673 0.554 0.456 0.3770.312 0.2580.215 0.178 0.149 0.104 0.073 0.061 0.0510.037 0.026 21 0.811 0.660 0.538 0.439 0.3590.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.0440.031 0.022 22 0.803 0.647 0.522 0.422 0.3420.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.0380.026 0.018 23 0.795 0.634 0.507 0.406 0.3260.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.0330.022 0.015 24 0.788 0.622 0.492 0.390 0.3100.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.0280.019 0.013 25 0.780 0.610 0.478 0.375 0.2950.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.0240.016 0.010 26 0.772 0.598 0.464 0.361 0.280.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.0210.0140.009 27 0.764 0.586 0.450 0.3470.2680.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.0180.0110.007 28 0.757 0.574 0.437 0.333 0.2550.196 0.1500.116 0.090 0.069 0.042 0.026 0.020 0.0160.010 0.006 29 0.749 0.563 0.424 0.321 0.2430.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.0140.008 0.005 30 0.742 0.552 0.412 0.308 0.2310.174 | 0.131 0.099 0.075 0.057 0.033 0.020 0.015 0.0120.007 0.004 40 0.672 0.453 0.307 0.208 0.1420.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.0030.0010.001 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.00 0.001 0.001 Print Done Reference Present Value of Ordinary Annuity of $1 Periods l 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 10.990 0.980 0.971 0.9620.9520.9430.935 0.926 0.917 0.909 0.893 0.877 0.8700.8620.847 0.833 2 1.970 1.942 1.913 1.8861.8591.833 1.808 1.783 1.759 1.736 1.690 1.647 16261.6051566 1.528 3 2.941 2.884 2.829 2.7752.7232.673 2.624 2.577 2.531 2.487 2.402 2.322 2.2832.2462.174 2.106 4 3.902 3.808 3.717 3.6303.5463.4653.3873.312 3.240 3.170 3.037 2.914 2.8552.7982.6902.589 5 4.853 4.713 4.580 4.4524.3294.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.2743.127 2.991 6 5.795 5.6015.417 5.2425.0764.917 4.767 4.623 4.486 4.355 4.111 3.889 3.7843.6853.4983.326 7 6.728 6.472 6.230 6.0025.7865.582 5.3895.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.9715.747 5.535 5.335 4.968 4.639 4.4874.3444.078 3.837 9 8.566 8.162 7.786 7.4357.1086.802 6.515 6.247 5.995 5.759 5.328 4.946 4.7724.6074.303 4.031 10 9.471 8.983 8.530 8.1117.7227.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.4944.192 11 10.368 9.787 9.253 8.760 8.3067.887 7.499 7.139 6.805 6.495 5.938 5.453 5.2345.0294.6564.327 12 11.255 10.575 9.954 9.385 8.8638.384 7.943 7.5367.161 6.814 6.194 5.660 5.4215.1974.793 4.439 13 12.134 11.348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 5.842 5.5835.3424.910 4.533 14 13.004 12.106 11.296 10.563 9.8999.2958.745 8.244 7.786 7.367 6.628 6.002 5.7245.4685.0084.611 15 13.865 12.849 11.938 11.118 10.3809.712 9.108 8.559 8.061 7.606 6.811 6.1425.8475.5755.092 4.675 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.9545.6695.162 4.730 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 6.0475.7495.222 4.775 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 5.8185.273 4.812 19 17.226 15.678 14.324 13.134 12.08511.158 10.336 9.604 8.950 8.365 7.366 6.550 6.1985.8775.316 4.844 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.9295.3534.870 21 18.857 17.011 15.415 14.029 12.82111.764 10.836 10.017 9.292 8.649 7.562 6.687 6.3125.9735.3844.891 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.0115.410 4.909 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.0445.432 4.925 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.0735.454.937 PrintDone Reference 8 7.652 7.325 7.020 6.733 6.463 6.210 5.9715.747 5.535 5.335 4.968 4.639 4.4874.3444.078 3.837 9 8.566 8.162 7.786 7.4357.1086.802 6.515 6.247 5.995 5.759 5.328 4.946 4.7724.6074.303 4.031 10 9.471 8.983 8.530 8.1117.7227.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.4944.192 11 10.368 9.787 9.253 8.760 8.3067.887 7.499 7.139 6.805 6.495 5.938 5.453 5.2345.0294.6564.327 12 11.255 10.575 9.954 9.385 8.8638.384 7.943 7.5367.161 6.814 6.194 5.660 5.4215.1974.793 4.439 13 12.134 11.348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 5.842 5.5835.3424.910 4.533 14 13.004 12.106 11.296 10.563 9.8999.2958.745 8.244 7.786 7.367 6.628 6.002 5.7245.4685.0084.611 15 13.865 12.849 11.938 11.118 10.3809.71 9.108 8.559 8.061 7.606 6.811 6.1425.8475.5755.092 4.675 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.9545.6695.162 4.730 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 6.0475.7495.222 4.775 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 5.8185.273 4.812 19 17.226 15.678 14.324 13.134 12.08511.158 10.336 9.604 8.950 8.365 7.366 6.550 6.1985.8775.316 4.844 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.9295.3534.870 21 18.857 17.011 15.415 14.029 12.82111.764 10.836 10.017 9.292 8.649 7.562 6.687 6.3125.9735.3844.891 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.0115.410 4.909 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.0445.432 4.925 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.0735.454.937 25 22.023 19.523 17.413 15.622 14.09412.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.0975.467 4.948 26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 6.491 6.1185.480 4.956 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.1365.492 4.964 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 6.534 6.1525.502 4.970 29 25.066 21.844 19.188 16.984 15.14113.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.1665.510 4.975 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.566 6.1775.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.2335.5484.997 50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 6.246 5.554 4.999 2 1 2 Print Done Reference Future Value of $1 Periods l 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% 11.010 1.020 1.030 1.04010501.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 2 1.020 1.040 1.061 1.0821.1031.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.1251.1581.19 1.225 1.260 1.295 1.331 1.405 1.482 1.521 4 1.041 1.082 1.126 1.1701.2161.262 1.311 1.360 1.412 1.464 1.574 1.689 1.749 5 1.051 1.104 1.159 1.2171.2761.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 6 1.062 1.126 1.194 12651.3401419 1.501 1.587 1.677 1.7721.974 2.195 2.313 7 1.072 1.149 1.230 1.316 1.4071.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 8 1.083 1.172 1.267 1.3691.4771.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.4231551.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 10 1.105 1.219 1.344 1.480 1.629.791.967 2.159 2.367 2.594 3.106 3.707 4.046 11 1.116 1.243 1.384 15391.7101.898 2.105 2.3322.580 2.853 3.479 4.226 4.652 12 1.127 1.268 1.426 1.6011.7962.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 13 1.138 1.294 1.469 1.665 1.8862.133 2.410 2.7203.066 3.452 4.363 5.492 6.153 14 1.149 1.319 1.51 1.7321.9802.2612.579 2.937 3.342 3.798 4.887 6.261 7.076 15 1.161 1346 1.558 1.8012.0792.3972.759 3.172 3.642 4.177 5.47 7.138 8.137 16 1.173 1.373 1.605 1.873 2.1832.5402.952 3.4263.970 4.595 6.130 8.137 9.358 17 1.184 1.400 1.653 1.948 2.2922.6933.159 3.700 4.328 5.054 6.866 9.276 10.76 18 1.196 1.428 1.702 2.026 24072.8543.380 3.9964.717 5.560 7.690 10.58 12.38 19 1.208 1.457 1.754 2.1072.5273.026 3.617 4.3165.142 6.116 8.613 12.06 14.23 20 1.220 1.486 1.806 2.19 2.6533.2073.870 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.7863.400 4141 5.034 6.109 7.400 10.80 15.67 18.82 22 1.245 1.546 1.916 2.370 2.9253.6044.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.97 2.465 3.0723.8204741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.225 4.0495.072 6.347.911 9.850 15.18 23.21 28.63 4 8 3 4 2 4 2 Print Done Reference 8 1.083 1.172 1.267 1.3691.4771.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.4231551.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 10 1.105 1.219 1.344 1.480 1.629.791.967 2.159 2.367 2.594 3.106 3.707 4.046 11 1.116 1.243 1.384 15391.7101.898 2.105 2.3322.580 2.853 3.479 4.226 4.652 12 1.127 1.268 1.426 1.6011.7962.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 13 1.138 1.294 1.469 1.665 1.8862.133 2.410 2.7203.066 3.452 4.363 5.492 6.153 14 1.149 1.319 1.513 1.7321.9802.2612.579 2.937 3.342 3.798 4.887 6.261 7.076 15 1.161 1346 1.558 1.8012.0792.3972.759 3.172 3.642 4.177 5.474 7.138 8.137 16 1.173 1.373 1.605 1.873 2.1832.5402.952 3.4263.970 4.595 6.130 8.137 9.358 17 1.184 1.400 1.653 1.948 2.2922.6933.159 3.700 4.328 5.054 6.866 9.276 10.76 18 1.196 1.428 1.702 2.026 24072.8543.380 3.9964.717 5.560 7.690 10.58 12.38 19 1.208 1.457 1.754 2.1072.5273.026 3.617 4.3165.142 6.116 8.613 12.06 14.23 20 1.220 1.486 1.806 2.19 2.6533.2073.870 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.7863.400 4141 5.034 6.109 7.400 10.80 15.67 18.82 22 1.245 1.546 1.916 2.370 2.9253.6044.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.974 2.465 3.0723.8204741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.225 4.0495.072 6.347.911 9.850 15.18 23.21 28.63 25 1.282 1.641 2.094 2.666 3.386 4.2925.427 6.848 8.623 10.83 17.00 26.46 32.92 26 1.295 1.673 2.157 2.772 3.556 4.5495.807 7.396 9.399 11.92 19.04 30.17 37.86 27 1.308 1.707 2.221 2.883 3.733 4.8226.214 7.988 10.25 13.11 21.32 34.39 43.54 28 1.321 1.741 2.288 2.999 3.9205.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 29 1.335 1.776 2.357 3.119 4.1165.4187.114 9.317 12.17 15.86 26.75 44.69 57.58 30 1.348 1.811 2.427 3.243 4.3225.743 7.612 10.06 13.27 17.45 29.96 50.95 66.21 40 1.489 2.208 3.262 4.8017.04010.29 14.97 21.72 31.41 45.26 93.05 188.9 267.9 50 1.645 2.692 4.384 7.10711.47 18.42 29.4646.90 74.36 117.4 289.0700.2 1,084 8 2 2 2 Print Done Reference Future Value of Ordinary Annuity of $1 Periods l 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% 11.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.010 2.020 2.030 2.0402.0502.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3 3.030 3.060 3.091 3.122 3.153 3.1843.2153.246 3.278 3.310 3.374 3.440 3.473 44.060 4.122 4.184 4.2464.3104.375 4.440 4.506 4.573 4.6414.779 4.921 4.993 5 5.101 5.204 5.309 5.4165.5265.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6 6.152 6.308 6.468 6.6336.8026.975 7.153 7.336 7.523 7.716 8.115 8.536 8.754 7 7.214 7.434 7.6627.898 8.1428.3948.654 8.923 9.200 9.487 10.09 10.73 11.07 8 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 9 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 10 10.46 10.95 11.46 12.0112.5813.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11 11.57 2.17 12.8 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.19 15.03 15.926.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.6317.7118.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.6021.02 22.55 24.2126.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.0221.5823.2825.13 27.15 29.36 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.6625.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 17 18.43 20.01 21.76 23.70 25.8428.2130.84 33.7536.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.1330.9134.00 37.45 41.30 45.60 55.75 68.39 75.84 19 20.81 22.84 25.12 27.6730.5433.7637.38 41.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.0736.7941.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.9735.7239.9944.8750.42 56.76 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.25 38.5143.39 49.0 55.46 62.87 71.40 92.50 120.4 137.6 23 25.72 28.85 3245 36.62 41.4347.005344 60.89 69.5379.54104.6 138.3 159.3 Print Done Reference 9 9.369 9.755 10.16 10.5811.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.0112.5813.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11 11.57 12.17 12.81 13.49 14.2114.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.19 15.03 15.926.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.6317.7118.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.6021.02 22.55 24.2126.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.0221.5823.2825.13 27.15 29.36 31.77 37.28 43.84 47.58 16 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 17 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 18 19.61 21.41 23.41 25.65 28.1330.9134.00 37.45 41.30 45.60 55.75 68.39 75.84 19 20.81 22.84 25.12 27.6730.5433.7637.38 41.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.0736.7941.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.9735.7239.9944.8750.42 56.76 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.25 38.5143.39 49.0 55.46 62.87 71.40 92.50 120.4 137.6 23 25.72 28.85 32.45 36.62 41.4347.00 53.4460.89 69.53 79.54 104.6 138.3 159.3 24 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118.2 158.7 184.2 25 28.24 32.03 36.46 41.6547.7354.8663.25 73.11 84.70 98.35 133.3 181.9 212.8 26 29.53 33.67 38.55 44.3151.1159.16 68.6879.95 93.32 109.2 150.3 208.3 245.7 27 30.82 35.34 40.7147.08 54.6763.7174.48 87.35 102.7 121.1 169.4 238.5 283.6 28 32.13 37.05 42.93 49.9758.4068.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 29 33.45 38.79 45.22 52.9762.3273.64 87.35 104.0 124.1 148.6 214.6 312.1 377.2 30 34.78 40.57 47.58 56.08 66.4479.06 94.46 113.3 136.3 164.5 241.3 356.8 434.7 40 48.89 60.40 75.4095.03120.8 154.8 199.6259.1 337.9442.6 767.1 ,342 1,779 50 64.46 84.58 112.8152.7 209.3290.3406.5 573.8 815.11,164 2,400 4,9957,218 6 5 1 2 2 Print Done Requirements 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 Lolas Company choose? Why? 4. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? Print Done