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Question list Question 1 Question 2 Question 3 Question 4 Reference of 6%. (Click the icon to view the present value annuity factor table.) (Click
Question list Question 1 Question 2 Question 3 Question 4 Reference of 6%. (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. Begin by computing the payback period for both plans. (Round your answers to one decimal place.) Plan A (in years) Plan B (in years) Reference Question list Java Joe Inc. operates a chain of doughnut shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,540,000. Expected annual net cash inflows are $1,700,000 with zero residual value at the end of ten years. Under Plan B, Java Joe would open three larger shops at a cost of $8,240,000. This plan is expected to generate net cash inflows of $1,250,000 per year for ten years, the estimated life of the properties. Estimated residual value is $1,025,000. Java Joe uses straight-line depreciation and requires an annual return of 6%. Question 1 (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.) Question 2 Read the requirements. Question 3 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.) Question 4 Plan A (in years) Plan B (in years) Que Reference Reference
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