Lulus Company operates a chain of sandwich shops (Click the icon to view Present Value of $1 table.) i (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table) Read the requirements More info The company is considering two possible expansion plans Plan A would open eight smaller shops at a cost of $8,410,000. Expected annual net cash inflows are Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two plans $1,500,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lulus Company would open three larger shops at a cost of $8, 100,000 Calculate the payback for both plans (Round your answers to one decimal place, X X) 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 Amount invested Expected annual net cash inflow Payback B is $1,100,000 Lulus Company uses straight-line depreciation and requires an Plan A 8410000 1500000 5 6 years annual return of 7% Plan B 8100000 1050000 = 7.7 years Calculate the ARR (accounting rate of return) for both plans (Round your answers to the nearest tenth percent, XX% ) Print Done Average annual operating income Average amount invested ARR Plan A 4205000 Plan B 4600000 aclulate 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 se parentheses or a minus sign for a negative net present value.) Plan A: Net Cash Annuity PV Factor PV Factor Present Time Remai Etext pages Calculator