tabos Company oferaies a chan of smifwigh shope. Hequlement 2. What ane Be stringthe and waknosse of thme captar budgeding nothote? Wanch twe term with fhe strenghe and walchewes isted for each of the tour captal bodpeing modys Cigital Budjeeiog Mathod Strengtha-Wenkenses of Capilal Budgeeling Mothod wased on cath fows, gan bo used bo issen proftablely, und taves into acocuol. The time value of meney thas none of be westnenses of the ceve moden. However, ingores protidiblty and the inte valie of mones. meaknoses of the ohe modele. Reguirement 3. Which apention plan stoula Ladee Combeny choose? Why? Laose Company should inveat in Do ifich imantar tule of reaming of Plan A is between This rand He conparys turth note ve 65 (Clek the keon to vime Present Vaune of 51 tabie.) (ctck the icen to vew Eresent Vilue of Ordinary Anewity of 51 fablo.) (Click the kon to view Future Vakie of 1 t table.) (Cick the loon to view Fusure Value of Crdinary Anhuly of 51 table.) More info The compary is considering tav possble expariaian plans. Plan A would open olght sntaller shops at a cost of $8,500,000. Expected annual net cash infows are $1,625,000 for 10 years, with zero residual value at the end of 10 years. Under Pian B, Lados Company would open threo larger shops at a cost of $8,240,000. This plan is expected to generate net cash inflows of $1,020,000 per year for 10 years, the estimated usaful ide of the properties. Ebtimated residual value for Plan is 51,100,000. Lados Company uses straght-line depreciaton and requires an annual retum of 6%. Whounts to theo decimal places, X xock. Use parentheses or a minist sign for a nogative net present value) Lados Coryany coerates a chain of sandwich shops. f) (Gick the icon to view aditions ivioemwion)) Reas the pouarementil Aequirement 1, Compre the pmbock, the ARR, the NPV, and the prottabliy index of these bwo plans. Calculate the fievback far boh plams. (Around your anewers to one decimai place, XX.) tabos Company oferaies a chan of smifwigh shope. Hequlement 2. What ane Be stringthe and waknosse of thme captar budgeding nothote? Wanch twe term with fhe strenghe and walchewes isted for each of the tour captal bodpeing modys Cigital Budjeeiog Mathod Strengtha-Wenkenses of Capilal Budgeeling Mothod wased on cath fows, gan bo used bo issen proftablely, und taves into acocuol. The time value of meney thas none of be westnenses of the ceve moden. However, ingores protidiblty and the inte valie of mones. meaknoses of the ohe modele. Reguirement 3. Which apention plan stoula Ladee Combeny choose? Why? Laose Company should inveat in Do ifich imantar tule of reaming of Plan A is between This rand He conparys turth note ve 65
