More info - fiue of Urdinary Ann pe of $1 table.) pe of Ordinary Annuit The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,600,000. 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. Limes Company would open three larger shops at a cost of $8,100,000 This plan is expected to generate net cash inflows of $1,020,000 per year for 10 years, the estimated useful life of the properties Estimated residual value for Plan B is $990,000. Limes Company uses straight-line depreciation and requires an annual return of 7%. Print Done bf $1 tablo 51 table) Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.9900 980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090893 0.877 0.870 08620 847 0833 Period 2 0.980 0.9610.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.765 0.743 0.718 0694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.676 0658 0641 06090.579 Period 4 0.961 0.924 0.8BB 0.865 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0482 Period 5 0.951 0.906 0.863 0.822 0.784 0,747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.478 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.5960564 0.507 04560432 04100 3700335 Period 7 0.933 0.871 0.813 0.750 0.7110.665 0.623 0.583 0.547 0.513 0,452 0.400 0.376 0.354 03140 279 Period 8 0.923 0.853 0.789 0.731 0.677 0627 0.582 0.540 0.502 046704040.351 0.327 0.305 0 266 0233 Period 9 0.914 0.837 0.766 0.7030645 0.592 0.544 0.500 0.460 0424 0.3610308 0 2840 253 0.225 0.194 Period 10 0.905 0.820 0.744 0.6760614 0.558 0.508 0.463 0.4220.386 03220 2700 2470 227 0.19 0.162 Period 11 0.898 0.804 0.722 0.650 0.585 0.527 0.4750429 0.3880 350 0.287 0 2370215 0.19 0.162 0.135 Period 12 0.887 0788 0.701 0.625 0 557 | 0497 0 444 0397 0.3660319 0.257 0 208 0.187 0.168 0.1370 112 Period 13 0.879 0.773 0.681 0.601 0.530 0.489 0.4150368 0326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.5770 5050442 0.388 0.340 0.299 0.263 0.2050 160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.6420556 0.481 0417 0.362 0.315 0.276 0239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.72806230 5340.458 0.394 0.33 0.292 0252 0218 0.1630 123 0.107 0.093 0.071 0.054 0.3170 2700 2310. 1980.1460108 0093 0.08000500045 Period 170842 0.714 0.605 0.5130436 0.371 Point Done Submit test . Stable) 51 table) 3 80 TV2 TUZO T.200 TOUTUHATTUTO TFT Period 15 0861 0.743 06420556 0.481 0.417 0.362 0316 0275 0.299 0.183 0.140 0.123 0.100 000 0065 Period 16 0.853 0.728 0.623 0534 0458 0.394 0.3390 2920.252 0.218 0 161 0.123 0.107 0090 00710064 Period 17 0844 0714 0.605 0.5130436 0.371 0317 0.27002310.1980.146 0.108 0.093 0.08000600045 Period 18 0.838 0.7000 587 049404160350 0.295 0.250 0212 0.180 0.1300096 0.081 0.069 0.061 0038 Period 19 0.828 0686 0.570 0.475 0.396 0.331 0277 0232 0.194 0164 0.116 0.083 0.00 0.060 0043 0.031 Period 20 B200.673 0,5540456 0.377 0.3120 258 0215 0.178 0.149 0.1040073 0061 0061 0037 0026 Period 21 0.811 0.660 0.538 0.439 0.3590.294 0 242 0.1990.1640.135 0093 0.064 0.053 0044 0.031 0.002 Period 22 0.803 0.647 0.522 0422 0.342 0.278 0.226 0.184 0150 0.125 0.083 0056 0016 0.038 0.025 0018 Period 23 0.795 06340507 0.405 0.326 0.282 0.211 0.170 0138 0.112 0.0740040 0.0400033 0.002 0016 Period 24 0.788 0.622 0.492 390 0.310 0.247 0.1970.1500126 0102 0.066 0.043 0.035 0.028 0.0190013 Period 25 0.780 0.6100478 0.375 0.2950 233 0.184 0 140 0.116 0.092 0059 0038 0.030 00240016 0.010 Period 26 0.772 0.598 0.4640351 0.2810 220 0.172 0.1350108 00140052 0.033 0.025 0.021 00140000 Period 27 10.764 0.5850450 0.347 0.2680207 0.161 0.125 0.0980076 00470 029 0.0230018 0.01 0.007 Period 28 0.757 0.574 0.437 0333 0.255 0.1960.1500116 0.000 0.0090042 0026 002000160010 0.005 Period 29 0 7490.563 0.4240321 0.243 0,185 0.14 0.107 0.002 0.063 00370.022 0.0170014 0.00 0.005 00990075 0.0670033 0.02000150012 0.007 0.004 Perlod 30 0.7420 5520.412 0 30 0 231 0.1740.131 Period 40 0672 0453 0.307 0.2000.142 0.097 0.067 0.04500820022001 0.005 0.004 2003 2001 0.001 Period 50 0.60 0.372 0228 0.1410087 0.0540 034 0.021 0.0130009 0.003 0.001 0.001 0.001 Print Done bf 51 table) 51 table) Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% Period 1 10% 12% 0.990 0.980 0.971 14% 0.962 0.962 0.943 0.935 0.926 0917 0 909 0.893 0877 0.870 0.86208470833 15% 16% 18% 204 Period 2 1.970 1.942 1.913 1.886 1859 1833 1.8081783 1759 1736 1.690 16471625 1605 1 566 1528 Period 3 2.9412.884 | 2.829 2.776 2.723 2673 2624 2577 2531 2487 2402 2322 2283 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3312 3240 3.1703.037 29142855 2798 2690 2 589 Period 5 4.853 | 4713 4.580 4.452 4.329 4212 4.100 3.9933.890 3.791 3.605 3.433 33523274 3.127 2 991 Period 6 5.795 5.601 6.417 5.2425.076 4.917 4 767 4.623 4486 43564 111 3889 3.7843.686 3.498 3.326 Period 7 6.728 6 472 6.230 6.0026 786 558253895 205 5033 48684564 4288 41604039 3.812 3605 Period 8 7.652 7.325 7.020 6.733 6.463 6210 5971 5.747 6.536 53354968 4 639 4487 4 344 4.078 3837 Period 9 8.566 8.162 7.786 7 435 7.108 6.802 6.5156247 6.996 5769 532849464772 4607 4303 4031 Period 10 9.4718.9838.530 8.111 7.722 7.360 7024 6710 6.418 6145 5.6505216 5019 4833 44944192 Period 11 10.368 9.787 9253 8.7808 30678877.499 7139 8.8056496 5938 6.463 5234 6.029 4656 4327 Period 12 11 255 10.575 9 954 9.3858.8638.384 79437.536 7.161 68146.194 6.680 5.421 5.197 47934439 Period 13 12. 134 11.348 10.635 9.986 9.3948.8538358790474877103 6.424 5.8425583 5.342 49104533 Period 14 13.004 12.108 11 296 10.5639 8999 295 8.745 8.244 7.786 7.3976628 6.002 5724 6468 5.008 4611 Period 15 13.865 12.849 1193811:118 10.380 9.712 8.108 569 8051 7.808 6,811 6.1425,847 5575 5.092 4675 Period 16 14.718 13.578 12 561 11 652 10 838 10.10894478851 8.313782469746265 5954 5669 5162 4730 5.7495 222 4775 Period 17 15.562 14 292 13 168 12 166 1127410.4771 9763 9.122 8.54480227.1206373 6047 Print Done $1 table) 51 table) Per 14 13.000 12.00 120 10.000.000 745 0.248 1780 17.30 0.020 VUUZT012 Period 15 0400 000 13 866 12.849 11.93811.118 10 3809712 9.108 8.559 1.061 7606 68116.142 5.8475.575 5092 4.675 Period 15 14.718 13.578 12.561 11652 10.838 10.106 94478.8618313 7.824 6.9746265 5.964 5.689 5162 4730 Period 17 15 562 14.292 13.166 12 166 11 274 10477 9.763 9.122 8.544 8.0227.1206373 6.0475 749 5222 4775 Period 18 16 398 14.992 13.754 12.659 11.690 10 828 10 050 93728.756 8.2017.250 6467 6.128 5.818 5273 4812 Period 19 17.226 15.678 14.324 13. 134 12.085 11.158 10.336 9.604 8950 8.365 7.366 6.5506.1985.877 5.316 4844 Period 20 18.046 16.361 14877 13.590 12.462 11470 10,5949818 9.129 8.5147.4696623 6.259 5929 6363 4870 Period 21 18.857 17 01115.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.56266876312 5.973 5384 4 891 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11 051 10 2019 442 8.7727.6456743 6359 6.01 5410 4909 Period 23 20 45618,292 16.444 14.857 13.489 12 303 11 272 10371 9.5808.88377186.792 6399 6.044 5432 4925 Period 24 21.243 18.914 16.936 15.247 13.799 12 550 11.469 10.529 970789857.784 6835 6.4346.073 5451 4907 Period 25 22.023 19.52317 413 15.622 14.094 12.783 11.65410,675 9.8239.077 7.8436.873 6.4646,09754574948 8.118 54804966 Period 26 2279520.121 17 877 15.983 14.375 13.003) 11 826108109.929 9.1617.8966.906 6.491 Period 27 | 23.560 20.707 18.327 16,330 14.643 13 211 11.987 10.935100279 2377 943 6.936 6514 6.138 5492 4.954 Period 28 24 316 2128118.764 16.663 | 14 898 13.406 121371106110 116 93077.9846.9616.6346.152 5602 4970 Period 29 25.06621.844 19.188 16.984 15 141 13.591 12.278 1158 10.1989370802269836.551 6.166 6510 4975 Period 30 26.80822.396 19 600 17.292 15 372 13.765 12.409 11 258 10 2749.4278.055 7.003 5.586 6 1775517 4979 Period 40 32 835 27.355 23.115 19.790 17 159 15.046 13 332 11925 10.757 9.77982447105 6642 6233 6.548 1997 Period 50 39.196 3142425.73021 482 18 25616.762 13 801 12 233 10.962 9.915 8 304 7.133 6661624855544999 Print Done RC Annuity of $1 table Annuity of $1 table. Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.030 1.040 1.050 1.050 1.070 1,080 1.090 1.100 1.120 1.140 1.150 1.020 1.040 1061 1.0821.103 1.1241.145 t 1661 188 1210 1.254 1.300 1.323 1.030 1.061 1.093 1.125 1.1581.191 1.225 1260 1.295 1.331 1.405 1.482 1.521 1.041 1.082 1.126 1.17012161.262 1.311 1.360 1.412 | 1464 1.574 1.6891749 1.051 1.104 1.159 1.217 1.2761.338 1,403 1.469 1.539 1.611 1.762 1.925 2011 1.062 1.126 1.1941.265 1.340 1.419 1.501 1587 1.677 1772 1.974 2195 2313 1.072 1.149 1 230 1.316 1.407 1.5041.606 1714 1.8281.949 2211 2502 2660 1.083 1.172 1.267 1.369 1.4771.594 1.718 1851 1.993 2144 2.476 2.8533069 1.094 1.195 1.305 1423 1551 1.689 1838 1999 2.172 2.368 2.773 3.252 3.618 1.105 1219 1344 1.480 1.629 1.791 1967 2159 2.367 2594 3.106 3.707 4.046 1.116 1.243 1.3841539 1710 1.898 2105 23322580 2.853 3:479 4.226 4652 1.127 1.268 1.426 1.601 1.796 2012 2.252 2518 2813 3.138 3.896 4.818 5.350 1.138 1 294 1469 1685 1.886 2133 2.410 2.720 3.066 3.452 4363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2261 2.579 2.937 3.342 3.798 4.887 62617076 1161 1.348 1.558 1801 2.079 2 397 2759 3.172 3.842 4.177 6.474 7.1388.137 1.173 1.373 1.606 1.873 2.183 2540 2962 3.426 3.970 4.595 6.130 8.1379.358 1.184 1400 1653 1948 | 2292 2693 3 15937004 328 50546 866 9.276 10,76 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 FOT Period 15 4 Annuity of $1 table.) Annuity of $1 table.) Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 period 23 Period 24 Period 25 149 1.31 TOTS 1732T1TZZOT 2079 23 32 3790 9.007 021 TUO 1.161 1 346 1.658 1.801 2079 23972.759 3.172 3.642 4.177 5.474 7 1388.137 1.173 1.3731606 18732183 2540 2952 3.426 3.970 4596 61308 137 9.358 1.194 1.400 1.663 1.948 22922693 3.159 3.7004328 50546.856 9.276 10.76 1.196 1.42817022026 2407 2854 3.380 3.996 4.717 55607.690 10.58 1238 1.208 1.457 1.754 2.107 2627 3.026 3.61743165142 6.116 8.613 12 061423 1.220 1.4861.806 2 191 2653 3 207 3.870 4.661 6.6046.727 9.646 13.74 16.37 1232 1.5161.860 2279 2.786 3.400 4.1415.034 6.1097.400 10.80 15.67 18.82 1.245 1546 1916 2370 2.9253604 44305437 6.669 8.140 12.10 17.86 21 64 1.257 1.577 1974 2.466 3.072 3.820 4.7415,871 72588.954 13.55 20.36 24.89 1.270 1608 2.033 2563 3.225 404950726341 79119.860 15.18 23.21 28 63 1.282 1.6412094 2666 3.396 4 292 5.42768488.623 10.83 17.00 25.463292 1.295 | 1673 2.157 2772 3.656 4549580773969399 1192 19.04 30.17 37 86 1.308 1.707 22212883 3.733 4822 62147988 10 25 13.11 21.32 34 39 43.54 1.321 1.7412288 2999 3.920 5.11266498.627 11.17 14:42 23 88 3920 50.07 1.335 2.367 3.119 4 1166.418 7.114 9.317 12 17 15.86 26.75 4469 57.58 1.348 1.811 2427 3.243 4322 5743 7612 10.08 13.27 17 45 29 96 50.96 6621 1.489 2.208 3.262 4.801 7.040 1029 14 07 21.72 3141452693.05 188.9 267.9 1 645269243847 107 11,4718 42 29 46 46.907438 1174 289.0 700.2 1084 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 Period 50 Annuity of 51 table) Perods Period 1 Period 2 Period 3 Period 4 Period 5 Annuity of $1 table.) Period 6 Period 7 Period 8 Period 9 Period 10 Future Value of Ordinary Annuity of $1 1% 2% 3% 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 1.000 1.000 1.000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 2120 2140 2150 3.030 3.060 3.091 3.122 3.153 3.1843215 3.246 32783310 3.374 3.440 3.473 4.060 4.122 4.184 | 4.246 4.310 4 375 4.440 4.506 4573 4641 4.779 4.921 4.993 6 101 5.204 5,309 5.416 5.526 5637 5.751 6.867 5.985 5.105 6,353 6610 6.742 6.152 6.308 6.468 6.633 6.802 6.9757. 1537.336 7.523 7.716 8.115 8.536 8.754 7.214 7.434 7.6627 898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8.286 8.583 | 8.8929.214 9.549 9.897 10.260 10.6411.03 11.44 12.30 13.23 13.73 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.4913.02 13.58 14.78 16.09 16.79 10.46 10.95 11.46 12.01 1268 13.18 13.82 144915 1915.94 17,55 19 34 20.30 11 57 12.17 12.8113.49 14 21 14.97 15.78 16,65 1756 18.53 20.65 23.04 24 35 1268 13.41 14 1915.03 15.92 16 87 17.8918.98 20.14 21 38 24 13 27 2729.00 13.81 14.68 15.62 1663 17.71 18.88 20.14 215022.95 24.52 28.03 32.09 34 35 14.95 15.97 17 09 18.2919.60 21.02 22.55 24 21 26.02 27.98 323937.58 40.50 16.10 17 29 18 60 20 022158 23 28 25.13 271529 3631.77 3728 43.84 4758 17.28 18.64 20.16 21.822366 25.67 27.89 30.32 33.00 35.95 42.76 50.98 55.72 18 43 20.01 21.76 23.70 25.84 29 21 30 84 33.75 36.97 40.54 48 88 59 126508 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 hg soil PUNTO Period 15 Annuity of S1 table) Annuity of $1 table.) 19.95 19.91 TTU 11.00 ZTUZ ZZO 24 ZITUZTZT 90 32.39 31.00 HUDU 16.10 17.29 18.60 20.02 2158 2328 25.13 27.15 29.36 3177 37.28 43.84 47.58 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 5572 18.43 20.01 21.76 23.70 25.84 28.21 30 84 33.75 36.974054 48.88 59.12 65.08 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 4130 45.60 5575 68.39 75.84 20.81 2284 25.12 27.67 30.54 33.76 37 38 41.45 46.02 51.16 63 44 78.97 88.21 22.02 24 30 26 87 29.7833.07 36.79 41.00 45.76 61.1657 28 72.05 9102 1024 23 24 25 78 28.68 3197 35.72 39 99 44 87 5042 66.76 64.00 81.701048 118.8 24.47 27 30 30.543425 38.51 43.39 49.01 55.46 62.87 71.40 92 50 120 4 1376 25.72 28.85 32.4536.62 41.43 47.00 53.4460.89 69.53 79.54 1046 138 3 1593 26 97 30.42 34.43 39.0844 50 50.82 58.18 66.767579 88,50 118 2158.71842 28 24 32 03 36.4541.66 47 73 54.86 63 25 73 11 84 70 98.35 133.3 181.9 2128 29.53336738 55 443151.11 59.16 68.68 79.959332109 2 150 3 208 3 245.7 30.82 35 34 40714708 54 67 63.717448 87 35 1027 121.1 169.4 238.5 283.6 32.13 37.05 42.93 49.97 58.4069.53 80 70 95 34 1130 134 2190.7 27293271 33 45 38.79 4522 52.97 62 3273 64 87 35 1040 12411486 2146 3121 3772 347840.57 47 58 56.08 68 44 79.08 94.46 1133 13631545 2413 356 84347 48.8960.40 75.40 95 03 1208 154.8 1996 259.1 337.9442676711342 1,779 34.46 84 5811281527 2093 290 34065 573.8 815.11.164 240049967218 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 period 30 Period 40 period 50 ARI dyo 2) to sind None Calculate the payback for both plans. (Round your answers to one decimal place, XX) Amount invested Expected annual net cash inflow Plan A 8600000 1600000 Plan B 8100000 1020000 Payback 54 years 7.9 years Calculate the ARR (accounting rate of return) for both plans (Round your answers to the nearest tenth percent XX%) Average annual operating income Amount invested = ARR Plan A % Plan B %6 Caclulate the NPV (net present value) of each plan Begin by calculating the NPV of Plan A (Complete all answer boxes. Enter a "Ufot any zero balances or amo thran Harimal nlaces X XXX Teenarenthesed or a minu sinnir ananati na natant value 3 Click the icon to view additional Information Read the requirement WY Ce the video tttt Caciulate the NPV (nt present value of each plan. Begin by calling the NPV of PA (Complete all web nomor three decimal places, XXXX. Use pare o asign formativa) Plan A: Net Cash Anti PV Factor PV Factor Present Years Below (67% 101 -10 Valm 110 Present value of annuity 10 Presentats of residual value Total PV of cash intown ment O Netre value of PA ma O Calculate the NPV 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 Xxxx for a negative not present value) Net Cash Inflow Annuity PV Factor (1-7%, n=10) PV Factor (1-7%, n=10) Present Value Plan B: Years 1 - 10 Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment Net prosent value of Plan B o Time Rer Total PV of cash intlows 0 Initial Investment Net present value of Plan B Calculate the profitability index of these two plans (Round to two decimal places XXX) Present value of net cash inflows Initial investment Profitability Index Plan A Plan B Requirement 2. What are the strengths and weaknesses of these capital budgeting methods? Match the term with the strengths and weaknesses listed for each of the four capital budgeting models, O . Click to view Vary of State) Click the consFWS) Click the bonis view of Profitability index It allows us to compare alternative Investments in present valoe terms and also accounts for differences in the investments initial cost. It has one of the weaknesses of the other models Requirement 3. Which expansion plan should Limes Company choose? Why? Limon Company should invest in Vi because it has a paytack perioda VARRO ne present value anda Requirement 4. Estimate Plan As IRR How does the IRR compare with the company's required rate of retum profiles The IRR (internal rate of return) of Plan A is between Y This rato the company's hurdle rate of 7% Time Remaining: 012