The amount of expected revenue from the stores will depend on the design of the contractor. For example, if HomeGrown decides on a more open floor plan, with less shelf space for products, revenue would be lower overall. However, if HomeGrown decides on a very crowded floor plan, it may lose customers who appreciate a more open feel As the project manager for HomeGrown, you are responsible for deciding which if any of the proposals to accept. HomeGrown's minimum acceptable rate of return is 20%. You receive the following data from the three contractors: Proposal Alpha Beta Gamma Type of Floor Plan Very open, like an indoor farmer's market Standard grocery shelving and layout, minimal aisle space Mix of open areas and shelving areas Investment if Selected Residual Value $1,472,000 5,678,900 2,525,960 $0.00 0.00 0.00 You have computed estimates of annual cash flows and average annual income from customers for each of the three contractors' plans. You believe that the annual cash fows will be equal for each of the 10 years for which you are preparing your capital investment analysis. Your conclusions are presented in the following table. Estimated Average Estimated Average Annual Cash Flow Annual Income Proposal (after depreciation Alpha Beta Gamma $313,094 272,019 620,249 $351,145 461,411 717,120