Lolas Company operates a chain of sandwich shops. Co the conte n ) (Click the icon to view Present Value of $1 table) Click the conte Present of Orinary Annuity of S abe) Click the icon to view Future Value of $1 table) (Click the icon to view Future Value of Ordinary Annuity of 1 table.) Read the requirements Requirements Payback 53 years Requirement Compute the payback, the ARR NPV and pro s these two plans Calcune pas for both paround your awesom e XX) Amount invested Expected annual net ons now Puan AS 8,400,000 600,000 Pin 8.300.000 1.000.000 Calcul courting from for both and your Argenus operwing income Argentines Plan A 700,000 Pas 2.000 4.64500 Cac Vrlohn Boyang VA O 1. Compute the payback, the ARR, the NIV, and the profitability indexed these twe plans 2. What we the strengths and weaknesses of these capital budgeting methods? W herson plans Company those? Why? 4 m a n's How does the compare with the company's rate of XXX) Am Dono b ra de More info Net Cash Inflow Annuity PV Facto 16) PV Factor 10) Yours 1.0 Prew e of annuity 10 Present was of reside 0 investment The company is considering the expansion plans Plan A would open Pe rsos a cost of 400.000. Expected not cashion $1.000.000 for 10 years or wa n d of 10 years. Under Plan B, Lola Company would on the wershops at a cost of $8,300.000 This plan is expected to generate nel cash infows of $1.030,000 per year for 10 years, the estimated us e of the properties. Estimated residual value for Plan Bis 5000.000 Lola Company uses straight-line depreciation and requires an annual rum of Netran value of Am Dono Periods 2 3 4% 0.962 0.925 0.882 0.855 0.822 0.790 0.760 0.731 0.703 0.804 1% 2% 3% 0.990 0.9800.971 0.980 0.961 0.943 0.971 0.942 0.915 0.961 0.924 0.888 0.951 0.906 0.863 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 0.896 0.722 | 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.861 0.743 0.642 0.853 0.728 0.623 0.844 0.714 0.605 0.836 0.700 0.587 0.828 0.686 0.570 0.820 0.673 0.554 0.811 0.660 0.538 0.803 0.647 0.522 0.795 0.634 0.507 0.788 0.622 0.492 0.780 0.610 0.478 0.772 0.598 0.464 0.764 0.586 0.450 0.757 0.574 0.437 0.749 0.563 0424 0.742 0.552 0.412 0.672 0.453 0.307 0.608 0.372 0.228 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.439 0.422 0.405 0.390 0.375 0.361 0.347 0.333 0.321 0.308 0.208 0.141 Present Value of $1 5% 6% 7% 8% 9% 10% 12% 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.907 0.890 0.873 0.8570.842 0.826 0.797 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.8230.792 0.763 0.735 0.708 0.683 0.636 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.746 0.705 0.6660.630 0.596 0.564 0.507 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.436 0.371 0.3170.270 0.231 0.1980.146 0.416 0.350 0.296 0.250 0.212 0.1800.130 0.396 0.331 0.277 0.232 0.1940.164 0.116 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.242 0.1990.1640.135 0.093 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.326 0.262 0.211 0.1700.138 0.112 0.074 0.310 0.247 0.197 0.158 0.126 0.1020.066 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.255 0.1960.150 0.116 0.090 0.069 0.042 0.243 0.185 0.141 0.107 0.082 0.063 0.037 0.231 0.1740.131 0.099 0.075 0.057 0.033 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.087 0.054 0.034 0.021 0.013 0.009 0.003 14% 15% 16% 18% 20% 0.877 0.870 0.862 0.847 0.833 0.769 0.756 0.743 0.7180.694 0.675 0.658 0.641 0.609 0.579 0.592 0.572 0.552 0.516 0.482 0.519 0.497 0.476 0.437 0.402 0.456 0.432 0.410 0.370 0.335 0.400 0.376 0.354 0.3140.279 0.351 0.327 0.305 0.266 0.233 0.308 0.284 0.263 0.225 0.194 0.270 0.247 0.227 0.191 0.162 0.237 0.215 0.1950.162 0.135 0.208 0.187 0.168 0.137 0.112 0.182 0.163 0.145 0.116 0.093 0.1600.141 0.125 0.099 0.078 0.140 0.123 0.108 0.084 0.065 0.123 0.107 0.093 0.071 0.054 0.108 0.093 0.080 0.060 0.045 0.095 0.081 0.069 0.051 0.038 0.083 0.070 0.060 0.043 0.031 0.073 0.061 0.051 0.037 0.026 0.064 0.053 0.044 0.031 0.022 0.056 0.046 0.038 0.026 0.049 0.040 0.033 0.022 0.015 0.043 0.035 0.028 0.019 0.013 0.038 0.030 0.024 0.016 0.010 0.033 0.026 0.021 0.014 0.009 0.029 0.023 0.018 | 0.011 0.007 0.026 0.020 0.0160.010 0.006 0.022 0.017 0.014 0.008 0.005 0.0200.015 0.012 0.007 0.004 0.005 0.004 0.003 0.001 0.001 0.001 0.001 0.001 Print Done Periods 2 3 Present Value of Ordinary Annuity of $1 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 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.6901.6471.626 1.605 1.566 1.528 2.9412.884 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 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.853 4.713 4.50 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5.795 5.601 5.417 5.2425.0764.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.4726.230 6.0025.786 5.582 5.389 5.206 5.033 4.8684.564 4.288 4.160 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.6394 .487 4.344 | 4.078 3.837 8.566 8.1627.786 | 7.435 7.108 6.8026.515 6.247 5.9955.759 5.328 4.946 4.7724.607 4.303 4.031 9.471 8.9838.530 8.1117.722 7.360 7.0246.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.368 9.7879.2538.760 8.306 7.887 7.499 7.139 6,805 6.495 5.9385.453 5.2345.029 4.656 4.327 11.255 10.575 9.954 9.3858.8638.3847.943 7.5367.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.3948.8538.358 7.9047.487 7.103 6.424 5.8425.583 5.3424.910 4.533 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.6286.0025.724 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 5.162 4.730 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.1206.373 6.047 5.749 5.222 4.775 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.7568.2017.250 6.467 | 6.128 5.818 5.273 4.812 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.3657.366 6.5506 .1985.877 5.316 4.844 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 5.9295.353 4.870 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.5626.687 6.312 5.973 5.384 4.891 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10 201 | 9.442 8.7727.645 6.7436 .3596.0115 .410 4.909 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 6.044 5.432 4.925 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.4346.073 5.451 4.937 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.8436.8736.464 6.097 5.467 4.948 22.795 20.12117.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.8966.906 6.491 6.118 5.480 4.956 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.5146.1365 .492 4.964 24.316 21.28118.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.9846.961 6.534 6.1525.502 4.970 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.975 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 6.177 5.517 4.979 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 6.233 5.548 4.997 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 18 39.196 Future Value of $1 Periods 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.138 1.149 1.161 1.173 1.184 1.196 1.208 1.220 1.232 1.245 1.257 1.270 2% 3% 1.020 1.030 1.040 1.061 1.061 1.093 1.0821.126 1.104 1.159 1.126 1.194 1.149 1.230 1.1721.267 1.195 1.305 1.219 1.344 1.243 1.384 1.268 1.426 1.294 1.469 1.319 1.513 1.346 1.558 1.373 1.605 1.400 1.653 1.428 1.702 1.457 1.754 1.486 1.806 1.516 1.860 1.546 1.916 1.577 1.974 1.608 2.033 1.641 2.094 1.673 2.157 1.707 2.221 2.288 1.776 2.357 2.427 2.208 3.262 2.692 4.384 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1.082 1.103 1.124 1.145 1.166 1.1881.210 1.254 1.300 1.323 1.125 1.158 1.191 1.225 1.260 1.295 | 1.331 1.405 1.482 1.521 1.170 | 1.216 1.262 1.311 1.360 1.412 1.464 1.574 | 1.689 1.749 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 1.316 1.407 1.504 1.606 1.7141.828 1.949 2211 2.502 2.660 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.665 1.886 2.133 | 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.2617.076 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 1.948 2.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 2.026 2.407 2.854 3.380 3.996 4.717 7.690 10.58 12.38 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 2.279 2.786 3.400 4.1415.034 6.1097.400 10.80 15.67 18.82 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 2.465 3.072 3.820 4.741 5.8717.258 8.954 13.55 20.36 24.89 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 2.772 3.556 4.549 5.8077.396 9.399 11.92 | 19.04 30.17 37.86 2.883 3.733 4.822 6.214 | 7.988 10.25 13.11 21.32 34.39 43.54 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 57.58 3.243 4.3225.743 7.612 10.06 13.27 | 17.45 29.96 50.95 66.21 4.801 7.040 10.29 14.9721.72 31.41 45.26 93.05 188.9 267.9 7.107 11.47 18.42 29.46 46.90 74.36 117.4 289.0 700. 2 1,084 5.560 1.282 1.741 1.295 1.308 1.321 1.335 1.348 1.489 1.645 1.811 Print Done Periods 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.16 11.46 12.81 14.19 15.62 17.09 1% 2% 1.000 1.000 2.010 2.020 3.0303.060 4.060 4.122 5.101 5.204 6.152 6.308 7.214 7.434 8.286 8.583 9.369 9.755 10.46 10.95 11.57 12.17 12.68 13.41 13.81 14.68 14.95 15.97 16.10 17.29 17.26 18.64 18.43 20.01 19.61 21.41 20.81 22.84 22.02 24.30 25.78 24.47 27.30 28.85 26.97 30.42 28.24 32.03 33.67 35.34 32.13 37.05 33.45 38.79 34.78 40.57 48.89 60.40 64.46 84.58 Future Value of Ordinary Annuity of $1 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4.246 4.3104.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6.633 6.8026.975 7.153 7.3367.523 7.716 8.115 8.536 8.754 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 10.58 11.03 11.49 11.98 12.49 13.02 13.58 | 14.78 16.09 16.79 12.01 12.58 13.18 13.82 14.49 15.1915.94 | 17.55 19.34 20.30 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 18.29 19.60 21.02 22.55 24.21 26.02 27.98 | 32.39 37.58 40.50 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 1024 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104. 6 138.3 159.3 39.08 44.50 58.18 66.76 76.79 88.50 118.2 158.7 184.2 41.65 47.73 54.86 63.25 73.11 84.70 98.35 181.9 212.8 44.31 51.11 59.16 68.68 79.95 93.32 109.2 150.3 208.31 245.7 47.08 54.67 63.71 74.48 87.35 102.7 121.1 169.4 283.6 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 52.97 62.32 73.648735 104.0 124.1 148.6 214.6 | 312.1 3772 56.08 66.44 79.06 94.46 113.3 136,3 164.5 241.3 356.8 434.7 95.03 | 120.8 | 154.8 | 199.6 259.1 337.9 442. 6 7671 1,342 1,779 152.7 209.3 290.3 406.5 573.8 815. 1 1.164 2,400 4,9957,218 20.16 21.76 23.41 25.12 26.87 28.68 23.24 25.72 50.82 29.53 30.82 238.5 32.45 34.43 36.46 38.55 40.71 42.93 45.22 47.58 75.40 1128