Save 3 of 3 complete HW Score: 40%, 4 of 10 pts Homework: Chapter 26 Homework Score: 0 of 6 pts X P26-31A (similar to) Lemon Company operates a chain of sandwich shops. Click the icon to view additional information.) Read the requirements Question Help 0 Click the icon to view Present Value of 1 table) Click the icon to view Present Value of Ordinary Annuity of $1 table) kok the icon to view Future Value of $1 table) Click the icon to view Future Value of Ordinary Annuity of $1 table) Requirement 1. Compute the payback, the ARR the NPV and the protability Index of these two plans. Calculate the payback for both plans. (Round your answers to one decimal place, XX) Payback PA Choose from any list or enter any number in the input fields and then click Check Answer 8. remaining Clear AB Check Answer Calculate the ARR (accounting rate of return for both plans (Round your answers to the nearest tenth percent. XXX.) AR PA Choose from any list or enter any number in the input fields and then click Check Answer 7 Fumanne CA Check Answer Year Cadulate the NPV inet present value) of each plan. Begin by calouating the NPV of Plan A (Complete all answer bowes. Enter a for any zero balances or amounts that do not apply to the plan. Enter any factor amounts to three decimal places, X.XXX.Use parentheses or a minus sign for a negative net present value) PA Net Cash Annuity PU Factor PV Factor Present (1-10%) Value 1-10 Present ofauty 10 Present of residente TPV of cash flows vestment Not present value of Plan Enter any number in the edt fields and then click Check Answer parts remaining Clear AB Check Answer Calculate the NPV of Plan B Complete all answer boxes Emerar for any zero balances or amounts that do not apply the plan. Etter any facter amounts to three decimal places, X.X200X Use parentheses or annua sign for a negativene presente Net Cash Annuity PV Factor PV Factor Present Years Inflow (1990%, n=10) [ 110%, Value 1-10 Present value of nuty 10 Present value of residual value Total PV of cash infows . Investment Net present value of Pan B Enter any number in the edit fields and then click Check Answer 5 am remaining Clear AB Check Answer Calculate the profitability index of these two plans. Round to two decimal places XXX.) - Profitability index PA Plan Chocce from any list or enterary number in the input fields and then click Check Answer parts Clear AB Check Answer 3 of 3 (3 complete) HW Score: similar to) QL Reference - rates a chain of sandwich lew additional information table.) table) 0.854 ute the payback, the ARR for both plans. (Round you Periods 1 2 3 4 5 6 7 8 9 10 0.402 0.813 0.513 11 12 13 14 15 Present Value of $1 1% SX 6% 7% 9% 10% 12% 14% 15% 16% 10% 20% 0.990 0.980 0.971 0.962 0.362 0.943 0.935 0.926 0.917 0.909 0.893 0877 0.870 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.971 0.942 0.894 0.915 0.889 0.840 0.816 0.79 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.700 0683 0.636 0.592 0.572 0.951 0.562 0.516 0.482 0.908 0.863 0.122 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.478 0.437 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.933 0871 0.760 0.711 0.665 0.623 0.583 0.923 0.547 0.452 0400 0.375 0.354 0.314 0.279 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.206 0.914 0.233 0.837 0.766 0.703 0.645 0.592 0.5140.500 0.660 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.905 0.820 0.744 0.675 0.614 0.558 0.500 0.422 0.389 0.322 0.270 0.247 0.227 0.191 0.162 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0388 0350 0.287 0.237 0.215 0.195 0.162 0.135 0.887 0.788 0.701 0.625 0.567 0.497 0.444 0.397 0.358 0.319 0257 0.208 0.187 0.168 0.137 0.879 0.112 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0229 0.182 0.163 0.145 0.116 0.870 0.093 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0263 0.205 0.160 0.141 0.125 0.099 0.078 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0275 0.2390.163 0.140 0.123 0.10B 0.084 0.065 0.853 0.728 0.623 0.534 0.4580.394 0.3390 212 0.252 0218 0.163 0.123 0.107 0.093 0.071 0.844 0.054 0.714 0.605 0.513 0436 0.371 0.317 0.270 0.231 0.193 0.146 0.108 0.093 0.0800.000 0.045 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 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.003 0.00 0.060 0.043 0.031 0.820 0.673 0.564 0.456 0.377 0.312 0.250 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.007 0.026 0.811 0.660 0.538 0439 0.389 0.2940.242 0.199 0.164 0.135 0.093 0.064 0.063 0.044 0.001 0.022 0.803 0.647 0.5220422 0.32 0.278 0.228 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.795 0.634 0.507 0406 0.326 0.22 0.211 0.170 0.138 0.112 0.074 0.049 0.788 0.622 0,040 0.033 0.022 0.015 0492 0.390 0.3100247 0.197 0.158 0.120 0.102 000 0.043 0.035 0.028 0.019 0.013 0.780 0.610 0478 0.375 0.295 0.233 0.184 0.146 0.116 0.002 0.059 0.038 0.000 0.004 0.016 0.010 nane A RMS AM AM 16 17 18 19 20 21 22 23 24 25 or enter any number in the Print Done Check An ar to) chain of sandwich Iditional Information Reference table.) table.) payback, the ARR. th plans. (Round you Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Present Value of Ordinary Annuity of $1 2% 3% 4% 5% 6% 7% 9% 10% 12% 14% 15% 0.990 0.980 0.971 0.962 0.962 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 1.970 1.942 1.913 1.886 1.859 1.833 1808 1.783 1.759 1.736 1.6901.647 1.626 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2855 4853 4.713 4.580 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 5.795 5.601 5417 5.242 5.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.6394487 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505.216 5.019 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.536 7.161 6.814 6.1945.660 5.421 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.103 5.842 5.583 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.788 7.367 6.6286.002 5.724 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 14.718 13.578 12.561 11.652 10.838 10.106 9447 8.851 8.313 7.824 6.9746.265 5.954 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.1206.373 6.047 16.398 14.992 13.754 12.659 11.690 10.828 10.0599.372 8.756 8.201 7.250 6.467 6.128 17 226 15,678 14.32413.13412085 11.158 10.336 9.604 8.950 8.365 7.3666.560 6.198 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.562 6.6876.312 19.660 17.658 15.93714451 13.163 12.042 11.061 10.2019.442 8.772 7.645 6.743 6.350 20.456 18.282 16.444 14.857 13.489 12.303 11.272 10.371 9.5808.8837.718 6.792 6.399 21.243 18.914 16.936 15.247 13.799 12.560 11.469 10.529 9.707 8.985 7.784 6.805 6.434 22.023 19.5231741315.622 14.094 12.783 11.654 10.675 9.8239.077 7.8436.873 6.464 99 m 7 OTT 1. 1996 one E DIA Tone eme 16% 18% 20% 0.862 0.847 0.833 1.605 1,566 1528 2.246 2.174 2.106 2.798 2.690 2.589 3.274 3.127 | 2.991 3.685 3.498 3.326 4.039 3.812 3.605 4.078 3.837 4.607 4303 4.031 4.833 4.494 4.192 5.0294656 4.327 5.1974.793 4.439 5.3424.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 5.669 5.1624.730 5.749 5.222 4.775 5.818 5.273 4.812 5.877 5.316 4.844 5.929 5.353 4.870 5.973 5.384 4.891 6.011 5.410 4.909 6.044 5432 4.925 6.073 5.451 4.937 6.097 5.467 4.948 7.487 16 17 18 19 20 21 22 23 24 An A ne or any number in th Print Done CI Hii ar to) a chain of sandwich shops. aditional information) Reference nuity of $1 table.) Periods puity of $1 table.) payback, the ARR, the NPV th plans. (Round your answer 2 3 4 5 1% 1010 1.020 1.030 1.041 1.051 1.062 1.072 1083 1.094 6 7 8 9 10 1.105 11 12 13 14 15 Future Value of $1 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 1,020 1.030 1.040 1.050 1.050 1070 1.080 1.090 1.100 1.120 1.140 1.150 1,040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 1.061 1.093 1.125 1.158 1.191 1 225 1.260 1.295 1.331 1.405 1.482 1.521 1.082 1.126 1.170 1.216 1.2621.311 1.360 1.412 1.464 1.5741.689 1.749 1.104 1.159 1217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 1.126 1.194 1.265 1.340 1419 1.501 1.587 1.677 1.772 1.9742.195 2.313 1.149 1.230 1.316 1.407 1.504 1.606 1.7141.828 1.949 2211 2.502 2.680 1.172 1.267 1 369 1477 1.594 1.718 1.851 1.993 2.1442476 2.853 3.059 1.195 1.305 1423 1,551 1.689 1.838 1.999 2.172 2.358 27733.252 3.518 1.219 1.344 1.480 1,629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4,046 1.2431384 1.539 1.710 1.898 2.105 2332 2.580 2.853 3.4794.226 4662 1.268 1.426 1.601 1.796 2.012 2252 2518 2.813 3.138 3.896 4.818 5.350 1.294 1.469 1.665 1.886 2.133 2.410 2720 3.068 1.452 4.363 5.492 6.153 1.319 1.513 1.732 1.980 2.281 2.579 2.937 3.342 3.798 4.887 6.261 7.078 1,346 1.568 1.801 2.079 2.397 2.759 3.172 3.642 5.474 7.1388.137 1.373 1.606 1.873 2.183 2.5402.962 3.426 3.970 4.596 6.130 8.137 9.358 1.400 1.653 1.948 2.292 2.690 3.159 3.700 4.328 5.0646.8669.276 10.76 1428 1.7022026 2407 2854 3.380 3.996 4.717 5.560 7.690 12.38 1457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.05 1423 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 1,516 1.850 2279 2.786 4.141 5.034 6.109 7400 10.80 15,67 18.82 1,546 1.916 2.370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.85 21.64 1,577 1.97424653.0723.820 4.741 5.8717.258 8.954 13.55 20.35 24 89 1,608 2.0032.563 3.225 4049 5.0726.341 7911 9.850 15.18 23.21 28.63 1,641 2.09 2.666 3.386 4.29254276.8488.623 10.83 17.00 2646 32.92 17 A EN En 79 An 1.116 1.127 1.138 1.149 1.161 1.173 1.184 1.195 1208 1220 1 232 1.245 1257 1270 16 17 18 19 20 21 22 23 24 25 1058 3.400 1 282 4 or any number in the input Print Done Cher # similar to) orates a chain of sandwich shops wiew additional information.) Reference nuity of $1 table) 5 pity of $1 table.) 1.000 Periods 1 2 3 4 $ Oute the payback, the ARR, the NPV for both plans. (Round your answer 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Future Value of Ordinary Annuity of $1 1% 25 3% 4% 5% 6% 7% 8% 94 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 2010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2120 2.140 2.150 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4060 4.122 4.184 4246 4310 4.375 4440 4.506 4.573 4.641 4.779 4.921 4.993 5.101 5.2045.309 5.416 5.526 5.637 5.751 5.8675.985 6.105 6353 6.610 6.742 6.152 6.308 6.468 6633 6.8026.975 7.153 7.336 7.523 7.7168.115 8.536 8.754 7.214 7.4347.6627.898 8.142 8.394 8654 8.923 9.200 9.487 10.09 10.73 11.07 8.286 8.5838.8929.214 9.549 9.897 10.260 10.54 11.03 11.44 12.30 13.23 13.73 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10.46 10.96 11.46 12.01 12.58 13.18 13.82 1449 15.19 15.94 17.55 19.34 20.30 11.57 12.17 1281 13.49 1421 1497 15.78 16.66 1756 18.53 20.65 23.04 2435 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27 27 29.00 13.81 14.68 1562 16.63 17.71 18.88 20.14 21.50 2295 24.52 28.03 32.09 34 35 14.95 15.97 17.00 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 4050 16.10 17.29 18.60 2002 21.58 23.28 25.13 27.15 29.36 31.77 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 55.72 18.43 20.01 2176 23.70 25.84 2821 30.84 33.75 36.97 40.54 48.88 59.12 19.61 2141 23.41 25.65 28.13 30.91 34.00 37.45 4130 45.60 56.75 68.39 7584 22.84 25.12 27.67 30.54 33.76 37.38 4145 46.02 51.16 78.97 88 21 22.02 24.30 26.87 29.7833.07 36.79 41.00 45.76 51.16 5728 72.05 9102 1024 23 24 25.78 28.68 31.97 38.72 39.99 44.87 504256.76 64.00 81.70 118.8 2447 27 30 30.54 4.25 38.51 43.30 49.01 56.46 6287 7140 22.50 1204 1378 25.72 28.85 3245 35.62 4143 47.00 53.44 60.89 69.53 79.54 1046 1383 26.97 3042 3443 39,08 44.50 50 82 58.18 66.78 76.79 88.50 1182 1587 1842 28.24 32,0336.4641.65 47.73 54 86 63.25 73.11 84.70 95.35 1333 181.9212.8 M 65.00 1048 21 22 23 24 25 or enter any number in the input Print Done Chec (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity PV, and the profitabil ers to one decimal More Info 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 inflows are $1,550,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lemons Company would open three larger shops at a cost of $8,150,000. This plan is expected to generate net cash inflows of $1,070,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan Bis $990,000. Lemons Company uses straight-line depreciation and requires an annual return of 7%. Print Done abiit.indav of those two plane al A 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? Print Done