please answer all od the following ASAP. Gave all info needed for answer.
Requirements 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 Lemons Company choose? Why? 4. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? Present Value of $1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline eriods & 18 & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 15% & 16% & 18% & 20% \\ \hline Period 1 & 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 \\ \hline Period 2 & 0.980 & 0.961 & 0.943 & 0.925 & 0.907 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 & 0.797 & 0.769 & 756 & 0.743 & 718 & 394 \\ \hline Period 3 & 0.971 & 0.942 & 0915 & 0.889 & 0.864 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 & 12 & & 658 & 11 & 09 & 579 \\ \hline Period 4 & 0.961 & 0.924 & 0.888 & 0.855 & 0.823 & 0.792 & 0.763 & 35 & 8 & 383 & 36 & 92 & 572 & 552 & 516 & 482 \\ \hline Period 5 & 0.951 & 0.906 & 0.863 & 0.822 & 0.784 & 0. & 0.713 & 0.681 & 0 & 0.621 & .567 & 519 & 497 & 0.476 & 0.437 & 0.402 \\ \hline eriod 6 & 0.942 & 0.888 & 0.837 & .790 & 0.746 & 70 & 0.666 & & 0.596 & 0.564 & 0.507 & 456 & 432 & 10 & 70 & 0.335 \\ \hline teriod 7 & 0.933 & 0.871 & 0.813 & 0.760 & 0.711 & 0.665 & 0.623 & & & 0.513 & 0.452 & 0 & 0.376 & 14 & 4 & 0.279 \\ \hline Period 8 & 0.923 & 0.853 & 0.789 & 0.731 & 0.677 & 0.627 & 0.582 & 0.5 & 0.502 & 0.467 & 0.404 & 0.351 & 0.327 & 0.305 & 0.266 & 0.233 \\ \hline Period 9 & 0.914 & 0.837 & 0.766 & 0.703 & 0.645 & 0.592 & 0.544 & 0.500 & 0.460 & 0.424 & 0.361 & 0.308 & 0.284 & 0.263 & 0.225 & 0.194 \\ \hline Period 10 & 0.905 & 0.820 & 0.744 & 0.676 & 0.614 & 0.558 & 0.508 & 0.463 & 0.422 & 0.386 & 0.322 & 0.270 & 0.247 & 0.227 & 0.191 & 0.162 \\ \hline 111 & 0.896 & 0.804 & 0.722 & 0.650 & 0.585 & 0.527 & 475 & 0.42 & 0.388 & 0.350 & 37 & 37 & 15 & 15 & 2 & 0.135 \\ \hline Period 12 & 0.887 & 0.788 & 0.701 & 0.625 & 0.557 & 0.497 & 0.444 & 0.3 & 0.356 & 0.319 & 0.257 & 0.208 & 0.187 & 0.168 & 0.137 & 0.112 \\ \hline Period 13 & 0.879 & 0.773 & 0.681 & 0.601 & 0.530 & 0.469 & 0.415 & 0.368 & 0.326 & 0.290 & 0.229 & 0.182 & 0.163 & 0.145 & 0.116 & 0.093 \\ \hline Period 14 & 0.870 & 0.758 & 0.661 & 0.577 & 0.505 & 0.44 & 0.388 & 0.3 & 0.299 & 0.263 & 0.205 & 0.160 & & 0.1 & 0.099 & 0.078 \\ \hline Period 15 & 0.861 & 0.743 & 0.642 & 0.555 & 0.481 & 0.41 & 0.362 & 0.315 & 0.275 & 0.239 & 0.183 & 0.140 & 0.123 & 0.108 & 0.084 & 0.065 \\ \hline d 16 & 0.853 & 0.728 & 0.623 & 534 & 0.458 & 0.394 & 309 & 0.29 & & & 33 & 123 & 0.107 & 0.093 & 0.071 & 0.054 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|} Period 17 & 0.844 & 0.714 & 0.605 & 0.513 & 0.436 & 0.371 & 0.317 & 0.270 & 0.231 & 0.198 & 0.146 & 0.108 & 0.093 & 0.060 & 0.060 & 0.045 \\ Period 18 & 0.836 & 0.700 & 0.587 & 0.494 & 0.416 & 0.350 & 0.296 & 0.250 & 0.212 & 0.180 & 0.130 & 0.095 & 0.081 & 0.069 & 0.051 & 0.038 \\ Period 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 & 0.060 & 0.043 & 0.031 \\ Period 20 & 0.820 & 0.673 & 0.554 & 0.456 & 0.377 & 0.312 & 0.258 & 0.215 & 0.178 & 0.149 & 0.104 & 0.073 & 0.061 & 0.051 & 0.037 & 0.026 \\ Period 21 & 0.811 & 0.660 & 0.538 & 0.439 & 0.359 & 0.294 & 0.242 & 0.199 & 0.164 & 0.135 & 0.093 & 0.064 & 0.053 & 0.044 & 0.031 & 0.022 \\ Period 22 & 0.803 & 0.647 & 0.522 & 0.422 & 0.342 & 0.278 & 0.226 & 0.184 & 0.150 & 0.123 & 0.083 & 0.056 & 0.046 & 0.038 & 0.026 & 0.018 \\ Period 23 & 0.795 & 0.634 & 0.507 & 0.406 & 0.326 & 0.262 & 0.211 & 0.170 & 0.138 & 0.112 & 0.074 & 0.049 & 0.040 & 0.033 & 0.022 & 0.015 \\ Period 24 & 0.788 & 0.622 & 0.492 & 0.390 & 0.310 & 0.247 & 0.197 & 0.158 & 0.126 & 0.102 & 0.066 & 0.043 & 0.035 & 0.028 & 0.019 & 0.013 \\ Period 25 & 0.780 & 0.610 & 0.478 & 0.375 & 0.295 & 0.233 & 0.184 & 0.146 & 0.116 & 0.092 & 0.059 & 0.038 & 0.030 & 0.024 & 0.016 & 0.010 \\ Period 26 & 0.772 & 0.598 & 0.464 & 0.361 & 0.281 & 0.220 & 0.172 & 0.135 & 0.106 & 0.084 & 0.053 & 0.033 & 0.026 & 0.021 & 0.014 & 0.009 \\ Period 27 & 0.764 & 0.586 & 0.450 & 0.347 & 0.268 & 0.207 & 0.161 & 0.125 & 0.098 & 0.076 & 0.047 & 0.029 & 0.023 & 0.018 & 0.011 & 0.007 \\ Period 28 & 0.757 & 0.574 & 0.437 & 0.333 & 0.255 & 0.196 & 0.150 & 0.116 & 0.090 & 0.089 & 0.042 & 0.026 & 0.020 & 0.016 & 0.010 & 0.006 \\ Period 29 & 0.749 & 0.563 & 0.424 & 0.321 & 0.243 & 0.185 & 0.141 & 0.107 & 0.082 & 0.063 & 0.037 & 0.022 & 0.017 & 0.014 & 0.008 & 0.005 \\ Period 30 & 0.742 & 0.552 & 0.412 & 0.308 & 0.231 & 0.174 & 0.131 & 0.099 & 0.075 & 0.057 & 0.033 & 0.020 & 0.015 & 0.012 & 0.007 & 0.004 \\ Period 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 \\ Period 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 & & \\ \hline \end{tabular} Present Value of Ordinary Annuity of \$1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Period 15 & 13.865 & 12849 & 11.938 & 11.118 & 10.330 & 9.712 & 9.108 & 8.559 & 8.061 & 7.606 & 6.811 & 6.142 & 5.847 & 5.575 & 5.092 & 4.675 \\ \hline Peri & 14.718 & 13.578 & 12.561 & 11.652 & 10.8381 & 10.106 & 9447 & 8.851 & 8.313 & 7.824 & 6.974 & 6.265 & 5.954 & 5669 & 5.162 & 4.730 \\ \hline Period 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 & 6.047 & 5749 & 5.2m & 4.776 \\ \hline Period 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 & 5.818 & 5.273 & 4.812 \\ \hline Period 19 & 17.226 & 15.678 & 14.324 & 13.134 & 12.085 & 11.158 & 10.336 & 9.604 & 8.950 & 8.365 & 7.366 & 6.550 & 6.198 & 5.8 & 5.316 & 4.844 \\ \hline Period 20 & 18046 & 16.351 & 14.877 & 13.590 & 12.462 & & 10.594 & 9.818 & 9.129 & 8.514 & 7.469 & 6.623 & 6.259 & 5929 & 5353 & 4.870 \\ \hline riod 21 & 18.857 & 17.011 & 15.415 & 14.029 & 12.821 & 764 & 10.836 & 10.017 & 9.292 & 8.649 & 7.562 & 6.687 & 6.312 & 5973 & 5.384 & 4.891 \\ \hline 122 & 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 & 6.011 & 5.410 & 4.909 \\ \hline 123 & 20.456 & 18.292 & 16.444 & 14.857 & 13.489 & 303 & 11.272 & 10.371 & 9.580 & 8.883 & 7.718 & 6.792 & 6.399 & 6.044 & 5.432 & 4925 \\ \hline 24 & 21.243 & 18.914 & 16.936 & 15.247 & 13 & 12550 & 11.469 & 10.529 & 9.707 & 8.985 & 7.784 & 6.835 & 6.434 & 6.073 & 5.451 & 4937 \\ \hline Per & 22023 & 19.523 & 17.413 & 15 & 14 & 12.783 & 11.654 & 10.675 & 9.823 & 9.077 & 7.843 & 6.873 & 6.464 & 6.097 & 5.467 & 4.948 \\ \hline 26 & 95 & 20.121 & 17.877 & & & & & 10 & 9.929 & 9.161 & 7.896 & 6.906 & 6.491 & 6.118 & 5.480 & 4.966 \\ \hline Pe & 560 & 20.707 & 18.327 & 16.330 & 14.643 & 13 & 11.987 & 10.935 & 10.027 & 9237 & 7.943 & 6.935 & 6.514 & 6.136 & 5.492 & 4964 \\ \hline Pe & 6 & 21281 & 18.764 & 16.663 & 14898 & 13 & 12.137 & 11.051 & 10.116 & 9.307 & 7.984 & 6.961 & 6.534 & 6.152 & 5.502 & 4.970 \\ \hline & 25.066 & & 19.188 & 16.984 & 15.1 & & 12.278 & 11.158 & 10.198 & 9.370 & 8.022 & 6.983 & 6.551 & 6.166 & 5.510 & 4975 \\ \hline Period 30 & 808 & 22.396 & 19.600 & 17.292 & 15 & 13.765 & 12.409 & 11.258 & 10.274 & 9.427 & 8.055 & 7.003 & 6.586 & 6.177 & 5517 & 4979 \\ \hline d 40 & 32.835 & 355 & 23.115 & 19.793 & 17.159 & .046 & 13.332 & 11.925 & .757 & 9.779 & 8.244 & 05 & 12 & 6.233 & 5.543 & 4.997 \\ \hline Period 50 & 39.196 & 31.424 & 25.730 & 21.482 & 18.256 & 15.762 & 13.801 & 12.233 & 10.962 & 9.915 & B.304 & 7.133 & 6.661 & 6246 & 5.554 & 4.999 \\ \hline \end{tabular} Future Value of $1 \begin{tabular}{|l|l|l|l|l|l|l|l|l|l|l|l|l|l|} \hline Period 15 & 1.161 & 1.346 & 1.558 & 1.801 & 2.079 & 2.397 & 2.759 & 3.172 & 3.642 & 4.177 & 5.474 & 7.138 & 8.137 \\ Period 16 & 1.173 & 1.373 & 1.605 & 1.873 & 2.183 & 2.540 & 2.952 & 3.426 & 3.970 & 4.595 & 6.130 & 8.137 & 9.358 \\ Period 17 & 1.184 & 1.400 & 1.653 & 1.948 & 2.292 & 2.693 & 3.159 & 3.700 & 4.328 & 5.054 & 6.866 & 9.276 & 1076 \\ Period 18 & 1.196 & 1.428 & 1.702 & 2.026 & 2.407 & 2.854 & 3.380 & 3.996 & 4.717 & 5.560 & 7.690 & 10.58 & 12.38 \\ Period 19 & 1.208 & 1.457 & 1.754 & 2.107 & 2.527 & 3.026 & 3.617 & 4.316 & 5.142 & 6.116 & 8.613 & 12.06 & 14.23 \\ Period 20 & 1.220 & 1.486 & 1.806 & 2.191 & 2.653 & 3.207 & 3.870 & 4.661 & 5.604 & 6.727 & 9.646 & 13.74 & 16.37 \\ Period 21 & 1.232 & 1.516 & 1.860 & 2.279 & 2.786 & 3.400 & 4.141 & 5.034 & 6.109 & 7.400 & 10.80 & 15.67 & 18.82 \\ Period 22 & 1.245 & 1.546 & 1.916 & 2.370 & 2.925 & 3.604 & 4.430 & 5.437 & 6.659 & 8.140 & 12.10 & 17.86 & 21.64 \\ Period 23 & 1.257 & 1.577 & 1.974 & 2.465 & 3.072 & 3.820 & 4.741 & 5.871 & 7.258 & 8.954 & 13.55 & 20.36 & 24.89 \\ Period 24 & 1.270 & 1.608 & 2.033 & 2.563 & 3.225 & 4.049 & 5.072 & 6.341 & 7.911 & 9.850 & 15.18 & 23.21 & 28.63 \\ Period 25 & 1.282 & 1.641 & 2.094 & 2.666 & 3.386 & 4.292 & 5.427 & 6.848 & 8.623 & 10.83 & 17.00 & 26.46 & 32.92 \\ Period 26 & 1.295 & 1.673 & 2.157 & 2.772 & 3.556 & 4.549 & 5.807 & 7.396 & 9.399 & 11.92 & 19.04 & 30.17 & 37.86 \\ Period 27 & 1.308 & 1.707 & 2.221 & 2.883 & 3.733 & 4.822 & 6.214 & 7.988 & 10.25 & 13.11 & 21.32 & 34.39 & 43.54 \\ Period 28 & 1.321 & 1.741 & 2.288 & 2.999 & 3.920 & 5.112 & 6.649 & 8.627 & 11.17 & 14.42 & 23.88 & 39.20 & 50.07 \\ Period 29 & 1.335 & 1.776 & 2.357 & 3.119 & 4.116 & 5.418 & 7.114 & 9.317 & 12.17 & 15.86 & 26.75 & 44.69 & 57.58 \\ Period 30 & 1.348 & 1.811 & 2.427 & 3.243 & 4.322 & 5.743 & 7.612 & 10.06 & 13.27 & 17.45 & 29.96 & 50.95 & 66.21 \\ Period 40 & 1.489 & 2.208 & 3.262 & 4.801 & 7.040 & 10.29 & 14.97 & 21.72 & 31.41 & 45.26 & 93.05 & 188.9 & 267.9 \\ Period 50 & 1.645 & 2.692 & 4.384 & 7.107 & 11.47 & 18.42 & 29.46 & 46.90 & 74.36 & 117.4 & 289.0 & 700.2 & 1.084 \\ \hline \end{tabular} Future Value of Ordinary Annuity of \$1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Period 15 & 16.10 & 1729 & 1860 & 20.02 & 21.68 & 2328 & 20.13 & 21.10 & 9.36 & & 3/.28 & 4384 & 47.58 \\ \hline Peri & 17.26 & 18.64 & 20.16 & 21.82 & 2366 & 25.67 & 27.89 & 30.32 & 33.00 & 35.96 & 42.75 & 5098 & 55.72 \\ \hline Period 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 \\ \hline Period 18 & 19.61 & 21.41 & 23.41 & 25.65 & 28.13 & 3091 & 3400 & 37.45 & 41.30 & 45.60 & 55.75 & 68.39 & 7584 \\ \hline Period 19 & 20.81 & 22.84 & 25.12 & 27.67 & 30.54 & 3376 & 37.38 & 41.45 & 46.02 & 51.16 & 63.44 & 78.97 & 88.21 \\ \hline Period 20 & 2202 & 24.30 & 26.87 & 2978 & 3307 & 36.79 & 41.00 & 45.76 & 51.16 & 57.28 & 72.05 & 1.02 & 102.4 \\ \hline Period 21 & 23.24 & 25.78 & 28.68 & 31.97 & 3572 & 3990 & 44.87 & 50.42 & 56.76 & 64.00 & 81.70 & 104.8 & 118.8 \\ \hline Period 22 & 24.47 & 27.30 & 30.54 & 34.25 & 3851 & 4339 & 49.01 & 55.46 & 62.87 & 71.40 & 92.50 & 120.4 & 137.6 \\ \hline Period 23 & 25.72 & 28.85 & 32.45 & 3662 & 41.43 & 47.00 & 53.44 & 6089 & 69.53 & 79.54 & 104.6 & 138.3 & 159.3 \\ \hline Period 24 & 26.97 & 30.42 & 34.43 & 3908 & 4450 & 5082 & 58,18 & 6676 & 76.79 & 88.50 & 118.2 & 158.7 & 184.2 \\ \hline Period 25 & 28.24 & 32.03 & 36.46 & 41.65 & 47.73 & 5486 & 6325 & 73.11 & 84.70 & 98.35 & 133.3 & 181.9 & 212.8 \\ \hline Period 26 & 29.53 & 33.67 & 38.55 & 44.31 & 51.11 & 59.16 & 6a68 & 79.96 & 93.32 & 109.2 & 150.3 & 208.3 & 245.7 \\ \hline Period 27 & 30.82 & 35.34 & 40.71 & 47.08 & 5467 & 6371 & 74.48 & 87.35 & 102.7 & 121.1 & 169.4 & 238.5 & 283.6 \\ \hline Period 28 & 32.13 & 37.05 & 42.93 & 4997 & 58.40 & 68.53 & 80.70 & 95.34 & 113.0 & 134.2 & 1907 & 2729 & 327.1 \\ \hline Period 29 & 33.45 & 38.79 & 45.22 & 52.97 & 62.32 & 73.64 & 87.35 & 104.0 & 124.1 & 148.6 & 214.6 & 312.1 & 377.2 \\ \hline Period 30 & 34.78 & 40.57 & 47.58 & 56.08 & 66.44 & 79.06 & 94.46 & 113.3 & 136.3 & 164.5 & 241.3 & 3568 & 434.7 \\ \hline Period 40 & 48.89 & 60.40 & 75.40 & 95.03 & 120.8 & 154.8 & 199.6 & 259.1 & 3379 & 442.6 & 767.1 & 1,342 & 1,779 \\ \hline Period 50 & 64.46 & 84.58 & 112.8 & 152.7 & 209.3 & 2903 & 406.5 & 573.8 & 815.1 & 1,164 & 2,400 & 4,995 & 7,218 \\ \hline \end{tabular} Requirement 1. Compute the payback, the AFR, the NPN, and the profitability index of these two plans. Calculate the payback for both plans. (Round your answers to one decimal place, XX) Cacluiate the NPV (net present value) of each plan Begin by calculating the NPV of Plan A (Complete all answer boxes. Erter a "or for any zero balances or ameunts that do not apply o the plan. Enter any factor amounts to three decimal places, XXOX. Use parentheses or a minss sign for a negative net present value) Calculate the NPV of Plan B. (Complete all answer boxes. Enter a for any zero balances or amounts that do not apply to the plan. Enter any factor amounts to three decimal places. XX0X. Use parentheses or a minus sign for a negative net present value.) \begin{tabular}{|c|c|c|c|c|c|} \hline \begin{tabular}{l} Plan 8: \\ Years. \end{tabular} & & \begin{tabular}{l} Net Cash \\ Inflow \end{tabular} & \begin{tabular}{l} Annuity PV Factor \\ (i9,n10) \end{tabular} & \begin{tabular}{l} PV Factor \\ (i=9N,a=10) \end{tabular} & \begin{tabular}{l} Prosent \\ Value \\ \end{tabular} \\ \hline 1=10 & Present value of annuty & & & & 0 \\ \hline 10 & Present value of residual value & & & & \\ \hline \multirow{3}{*}{0} & Total PV of cash inflows & & & & \\ \hline & Intial Investmemt & & & & \\ \hline & Net presert value of Plan & & & & = \\ \hline \end{tabular} Calculate the profitability index of these two plans (Round to two decimal places XXX) =Profitabifity index 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 mod the time value of money. it has none of the weaknesses of the other models. is easy to understand, is based on cash flows, and highlights risks. However, a ignores profitability and the time value of money. Can be used to assess profiablity, but it ignores the time value of money It allows us to compare alternative investments in present value terms and it also accounts for diflerences in the investments' initial cost. It has none of the weaknesses of the other models. Requirement 3. Which exparsion plan should Lemons Company choose? Why? Lemons-Company should invest in because it has a payback period, a ARR, a net present value, and a profitabilty index Requirement 4. Estimate Plan A's IRR. How does the IRR compare with the comparry/s required rate of rotum? The iRR (intemal rate of rutum) of Plan A is between This rate the company/s hurdle rate of 9%
