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properties. Estimated residual value is $1,125,000. Has Beans uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view the present
properties. Estimated residual value is $1,125,000. Has Beans uses straight-line depreciation and requires an annual return of 10%. (Click the icon to view the present value annuity factor table. (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table.) Read the requirements. Requirement 1. Compute the payback period, the ARR, and the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? Begin by computing the payback period for both plans. (Round your answers to one decimal place.) Plan A (in years) Plan B (in years) Requirements 1. Compute the payback period, the ARR, and the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? 2. Which expansion plan should Has Beans choose? Why? 3. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? Reference 0. This plan is expected to generate net cash inflows of $1,400,000 per year for ten years, the estimated life retum of 10%. factor table.) factor table.) Reference Reference This plan is expected to generate net cash inflows of $1,400,000 per year for ten years, the estimated life of the turn of 10%. actor table.) tor table.) Reference
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