Requirement 1. Compute the paybaok, the ARR, the NPV, and the profitability index of these two plans. Calculate the payback for both plans. (Round your answers to one decimal place, X.X.) Requirement 3 Whioh expansion plan should Limes Compiny choose? Why? Limes Company should meat in because t has a parback period. ARP, a net present valeo. and a Requirement 4 Estimate PaAn A's IRR. Hew does Be IRR compare with the companys required rate of relurn? The RRR cintemal rate of return) or Plan A is becween This rate the company's hurdio cate of git The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,400,000. Expected annual net cash inflcws 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 $1,100,000 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 9%. Present Value of $1 Present Value of Ordinary Annuity of $1 Future Value of $1 Future Value of Ordinary Annuity of \$1 Print Done Requirement 1. Compute the paybaok, the ARR, the NPV, and the profitability index of these two plans. Calculate the payback for both plans. (Round your answers to one decimal place, X.X.) Requirement 3 Whioh expansion plan should Limes Compiny choose? Why? Limes Company should meat in because t has a parback period. ARP, a net present valeo. and a Requirement 4 Estimate PaAn A's IRR. Hew does Be IRR compare with the companys required rate of relurn? The RRR cintemal rate of return) or Plan A is becween This rate the company's hurdio cate of git The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,400,000. Expected annual net cash inflcws 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 $1,100,000 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 9%. Present Value of $1 Present Value of Ordinary Annuity of $1 Future Value of $1 Future Value of Ordinary Annuity of \$1 Print Done