Lukes 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, X.X.) = Payback years Plan A Plan B years Calculate the ARR (accounting rate of return) for both plans. (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 "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.) Net Cash Plan A: Years Annuity PV Factor (i=9%, n=10) PV Factor (i=9%, n=10) Present Value Inflow 1 - 10 Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment Net present value of Plan A Calculate the NPV of Plan B. (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 B: Years Net Cash Inflow Annuity PV Factor (i=9%, n=10) PV Factor (i=9%, n=10) Present Value 1 - 10 Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment Net present value of Plan B Calculate the profitability index of these two plans. (Round to two decimal places X.XX.) Profitability index Plan A Plan B Present Value of $1 Periods 1 2 3 4 5 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 Periods 1 2 3 4 5 1% 0.990 1.970 2.941 3.902 4.853 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 5% 0.952 1.859 2.723 3.546 4.329 Present Value of Ordinary Annuity of $1 6% 7% 8% 9% 10% 0.943 0.935 0.926 0.917 0.909 1.833 1.808 1.783 1.759 1.736 2.673 2.624 2.577 2.531 2.487 3.465 3.387 3.312 3.240 3.170 4.212 4.100 3.993 3.890 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 15% 0.870 1.626 2.283 2.855 3.352 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2 106 2.589 2.991 6 7 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.630 0.583 0.540 0.500 0.463 0.596 0.547 0.502 0.460 0.422 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.432 0.376 0.327 0.284 0.247 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 8 9 10 5.795 6.728 7.652 8.566 9.471 5.601 6.472 7.325 8.162 8.983 5.417 6.230 7.020 7.786 8.530 5.076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.360 4.767 5.389 5.971 6.515 7.024 4.623 5.206 5.747 6.247 6.710 4.486 5.033 5.535 5.995 6.418 4.355 4.868 5.335 5.759 6.145 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.784 4.160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 0.676 11 7.499 7.943 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.388 0.356 0.326 0.299 0.275 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.187 0.163 0.141 0.123 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 11.255 10.575 9.954 9.385 8.863 12.13411.348 11.348 10.635 9.986 9.394 13.004 12.106 11.296 | 10.563 9.899 13.865 12.849 11.938 11.118 | 10.380 7.887 8.384 8.853 9.295 9.712 7.139 7.536 7.904 8.244 6.805 7.161 7.487 7.786 8.061 8.358 8.745 9.108 6.495 6.814 7.103 7.367 7.606 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 5.234 5.421 5.583 5.724 5.847 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 8.559 6.142 0.163 16 17 18 19 20 0.853 0.844 0.836 0.828 0.820 0.728 0.714 0.700 0.686 0.673 0.623 0.605 0.587 0.570 0.554 0.534 0.513 0.494 0.475 0.456 0.458 0.436 0.416 0.396 0.377 0.394 0.371 0.350 0.331 0.312 0.339 0.317 0.296 0.277 0.258 0.292 0.270 0.250 0.232 0.215 0.252 0.231 0.212 0.194 0.178 0.218 0.198 0.180 0.164 0.149 0.146 0.130 0.116 0.104 0.123 0.108 0.095 0.083 0.073 0.107 0.093 0.081 0.070 0.061 0.093 0.080 0.069 0.060 0.051 0.071 0.060 0.051 0.043 0.037 0.054 0.045 0.038 0.031 0.026 16 17 18 19 20 6.974 7.120 7.250 7.366 7.469 6.265 6.373 6.467 6.550 5.954 6.047 6.128 6.198 6.259 5.669 5.749 5.818 5.877 5.929 5.162 5.222 5.273 5.316 5.353 4.730 4.775 4.812 4.844 4.870 6.623 0.439 0.422 21 22 23 24 25 0.811 0.803 0.795 0.788 0.780 0.660 0.647 0.634 0.622 0.610 0.538 0.522 0.507 0.492 0.478 0.359 0.342 0.326 0.310 0.295 0.294 0.278 0.262 0.247 0.233 0.242 0.226 0.211 0.406 0.199 0.184 0.170 0.158 0.146 0.164 0.150 0.138 0.126 0.116 0.135 0.123 0.112 0.102 0.092 0.093 0.064 0.083 0.056 0.074 0.049 0.066 0.043 0.059 0.038 0.053 0.046 0.040 0.035 0.030 0.044 0.038 0.033 0.028 0.024 0.031 0.026 0.022 0.019 0.016 0.022 0.018 0.015 0.013 0.010 21 22 23 24 25 7.562 7.645 7.718 7.784 7.843 6.687 6.743 6.792 6.835 6.873 5.973 6.011 6.044 6.312 6.359 6.399 6.434 6.464 14.718 | 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 15.562 14.292 13.166 12.166 | 11.274 10.477 9.763 9.122 8.544 8.022 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 17.226 15.678 14.324 13.134 12.085 | 11.158 10.336 9.604 8.950 8.365 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 18.857 17.011 15.415 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 22.795 20.121 | 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 23.560 20.707 18.327 16.330 14.643 13.211 13.211 11.987 10.935 10.027 9.237 24.316 21.28118.764 16.663 14.898 13.406 13.406 12.137 11.051 10.116 9.307 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 25.808 22.396 19.600 17.292 15.372 13.765 13.765 12.409 11.258 10.274 9.427 32.835 27.355 23.115 | 19.793 17.159 | 15.046 13.332 11.925 15.046 13.332 11.925 10.7579.779 39.196 | 31.424 25.730 21.482 18.256 15.762 13.801 | 12.233 12.233 10.962 9.915 5.384 5.410 5.432 5.451 5.467 4.891 4.909 4.925 4.937 4.948 0.197 6.073 0.390 0.375 0.184 6.097 26 27 28 29 30 0.772 0.764 0.757 0.749 0.742 0.598 0.586 0.574 0.563 0.552 0.464 0.450 0.437 0.424 0.412 0.361 0.347 0.333 0.321 0.308 0.281 0.268 0.255 0.243 0.231 0.220 0.207 0.196 0.185 0.174 0.172 0.161 0.150 0.141 0.131 0.135 0.125 0.116 0.107 0.099 0.106 0.098 0.090 0.082 0.075 0.084 0.076 0.069 0.063 0.057 0.053 0.047 0.042 0.037 0.033 0.033 0.029 0.026 0.022 0.020 0.026 0.023 0.020 0.017 0.015 0.021 0.018 0.016 0.014 0.012 0.014 0.011 0.010 0.008 0.007 0.009 0.007 0.006 0.005 0.004 26 27 28 29 30 7.896 7.943 7.984 8.022 8.055 6.906 6.935 6.961 6.983 7.003 6.491 6.514 6.534 6.551 6.566 6.118 6.136 6.152 6.166 6.177 5.480 5.492 5.502 5.510 5.517 4.956 4.964 4.970 4.975 4.979 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.001 40 8.244 7.105 6.642 6.233 5.548 4.997 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 50 8.304 7.133 6.661 6.246 5.554 4.999 Future Value of $1 Future Value of Ordinary Annuity of $1 1 Periods 1 2 3 4 5 1.010 1.020 1.030 1.041 1.051 12% 1.020 1.040 1.061 1.082 1.104 39 1.030 1.061 1.093 1.126 1.159 498 1.040 1.082 1.125 1.170 1.217 15% 1.050 1.103 1.158 1.216 1.276 68 1.060 1.124 1.191 1.262 1.338 7 1.070 1.145 1.225 1.311 1403 88 1.080 1.166 1.260 1.360 1.469 99% 1.090 1.188 1.225 1.412 11.539 104 11.100 1210 1.331 1.464 1.611 128 1.120 1.254 1.405 1.574 1.762 148 1.140 1.300 1.482 1.683 1.925 15% 1.150 1.323 1.521 1.749 2011 Periods 1 2 3 4 5 1% 1.000 2.010 3.030 4.060 5.101 28 1.000 2020 3.060 4.122 5.204 38 1.000 2030 3.091 4.184 5.309 4% 58 1.000 1.000 2.040 2.050 3.122 3.153 4.246 4.310 5.416 5.526 16.533 | 6.802 7.898 8.142 9214 9.549 10.59 11.03 12.01 1258 56 1.000 2.060 3.184 4.375 5.637 7% 1.000 2070 3215 L 440 5.751 8% 1.000 2.080 3245 4.506 5.867 9 1.000 2030 3278 4.573 5.985 10% 128 1.000 | 1.000 2.100 12.120 3.310 3.374 4.641 4.779 6.105 6.353 149 1.000 2.140 3.440 4.921 6.610 15% 11.000 12.150 13.473 4993 6.742 6 7 6 7 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.14 1.230 1.267 1.305 1.34A 1.265 1.316 1.363 1.423 1.490 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.501 1.506 1.718 1.838 1.967 1.587 1.714 1.851 1.999 2.159 1.577 1.828 1.993 2172 2.357 1.772 1.949 2144 2.358 2.594 1.97A 2211 2476 12.73 3.106 2.195 2.502 2.853 3.252 3.707 2.313 2.660 3.053 3.518 4.046 5.152 7.214 8.286 9.359 10.46 6.308 7.434 8.583 9755 10.95 6468 7.562 8.882 10.16 11.46 6.375 8.394 9.897 11.49 13.18 7.153 8.654 10.260 11.98 13.82 7.336 8.923 10.84 12.49 14.49 7.523 9.200 11.03 13.02 15.19 7.716 9487 11.44 13.58 15.94 8.15 10.03 12.30 14.78 17.55 8.536 10.73 13.23 16.03 19.34 18.754 11.07 13.73 16.79 20.30 9 10 9 10 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.898 2012 2.133 2.261 2397 2105 2252 2.410 2.579 2.759 2.332 2.518 2720 2937 3.172 2.853 3.138 3.452 378 4.177 3.479 3.896 4.363 4.227 5.474 4.226 4.818 5482 6.261 7.138 4.652 5.350 6.153 7.076 8.137 11 12 13 14 15 11.57 12.68 13.81 14.95 | 16.10 12.17 13.41 14.68 15.97 17.29 12.81 14.19 15.62 17.09 18.60 13.49 15.03 16.63 18.29 20.02 14.21 15.92 17.71 19.60 21.58 14.37 16.87 18.88 21.02 23.28 15.78 17.89 20.14 22 55 25.13 16.65 18.98 21.50 24.21 27.15 17.56 20.14 22.95 26.02 29.36 18.53 21.38 24.52 27.98 31.77 20.55 24.13 28.03 32.39 37.28 22.04 27.27 32.09 37.58 43.84 24.35 29.00 34.35 40.50 47.58 1.539 1710 1.501 1.796 1.665 1.886 1732 1.980 1.801 2079 1873 | 2.183 1948 2.292 2.026 2407 2107 2527 2191 2.653 2.580 2.813 13.066 3.342 3.642 3.970 4.328 4.717 5.142 5.504 16 17 13 19 20 1.173 1.184 1.19 1.208 1.220 1.373 1.400 1428 1.457 1.486 1.605 1.653 1.702 1754 1.806 2.540 2.693 2.854 3.025 3.207 2952 3.159 3.380 3.617 3.870 3.426 3700 3996 4316 4661 4.595 5.054 5.550 6.116 5.727 6.130 ] 8.137 | 5.866 | 9.276 7.580 10.58 8.513 12.06 3.546 13.74 9358 10.76 12.38 14.23 16.37 16 17 18 9 20 17.26 18.43 19.61 20.81 22.02 18.4 20.01 21.41 22.84 24.30 20.16 21.76 23.41 25.12 26.87 21.82 23.70 25.65 27.57 29.78 23.56 25.84 28.13 30.54 33.07 25.57 28.21 30.31 32.76 36.79 27.9 30.94 34.00 37.38 41.00 30.32 33.75 37.45 41.45 45.76 33.00 36.97 41.30 46.02 51.16 35.95 40.54 45.60 51.16 57.28 42.75 48.88 55.75 63.44 72.05 50.98 59.12 6.39 78.97 91.02 55.72 65.08 75.84 8821 102.4 21 22 23 24 25 1.232 1.245 1.257 1.270 1.282 1.516 1.546 1.57 1.608 11.541 1.860 1.916 1.974 2.033 2.094 2.279 2.370 2.465 2.563 2.666 2.786 2.925 3.072 3.225 3.386 3400 3.604 3.820 4.049 4.292 4.141 4.430 4.741 5.072 5.427 5.034 5.437 5.871 6.341 6.848 6109 6.559 7.258 791 8.523 7.400 8.140 8.964 9.850 10.80 12.10 13.55 | 15.18 15.67 17.86 20.36 23.21 26.46 18.82 21.54 24.89 28.63 32.92 21 22 23 24 25 23.24 24.47 25.72 26.37 28.24 25.78 | 28.68 27.30 | 30.54 28.85 | 32.45 30.42 | 34.43 32.00 36.46 35.72 39.99 38.51 43.39 41.43 47.00 44.50 | 50.82 47.73 54.86 44.87 49.01 53.44 58.18 63.25 50.42 | 56.76 64.00 55.46 62.87 71.40 60.89 69.53 79.54 56.76 76.79 | 88.50 73.11 84.70 58.35 81.70 2.50 14.6 118.2 133.3 14.8 120.4 138.3 158.7 181.9 1188 137.8 159.3 194.2 212.8 10.33 7.00 31.7 34.25 36.52 39.08 41.65 44.31 47.08 49.97 52.7 56.08 151.11 54.67 | 109.2 | 1211 245.7 283.6 26 27 28 29 30 1.295 1.303 1.321 1.335 1.348 1.673 1.707 1.741 1.776 1.81] 2157 2.221 2.288 2.357 2.427 2.772 2.883 2.999 13.119 3.556 3.733 3920 4.116 4.322 4.549 5.807 4.822 6.214 15.112 6.549 5.418 7.114 5.743 17.612 7.395 7988 8.627 9.317 10.06 3.399 10.25 11.17 12.17 13.27 37.86 43.54 50.07 57.58 66.21 11.92 1311 14.42 15.86 17.45 45.26 26 27 28 29 30 19.04 30.17 21.32 | 34.39 22.88 39.20 26.75 44.69 29.96 50.25 2.05 1283 29.53 30.82 32.13 33.45 34.78 33.67 35.34 37.05 38.79 40.57 58.40 38.55 40.71 42.93 45.22 47.58 59.16 63.71 68.53 3.64 79.06 68.68 TAA8 80.70 87.35 34.46 79.95 87.35 95.34 104.0 113.3 13.2 93.32 102.7 | 113.0 124.1 136.3 150.3 169.4 190.7 214.6 241.3 327.1 208.3 238.5 2729 312.1 356.8 62.32 | 66.44 148.6 164.5 3.243 37.2 434.7 40 1.489 2.208 3.262 | 4.801 7.040 10.29 31.41 40 48.88 60.40 75.40 5.3 120.8 18.8 199.6 255.1 87.3 442.6 767.1 1.342 1.79 14.97 21.72 29.46 | 46.90 267.9 1.084 50 1.545 2.592 4.384 7.107 1.47 18.42 74.36 17.4 289.0 700.2 50 64.46 84.58 1128 152.7 203.3 | 290.3 406.5 573.8 815.1 1.164 2400 4.995 7.218 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, Lukes Company would open three larger shops at a cost of $8,300,000 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 $1,200,000. Lukes Company uses straight-line depreciation and requires an annual return of 9%