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this is all one question (Click the (Click the Hill Company operates a chain of sandwich shops (Click the icon to view additional information Road

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(Click the (Click the Hill Company operates a chain of sandwich shops (Click the icon to view additional information Road the requirements (Click the (Click the Requirement 1. Compute the payback the ARR, the NPV, and the profitability index of those two plans Calculate the payback for both plans. (Round your answers to ono decimal place, XX) Payback years Plan A years Plan B Calculate the ARR (accounting rate of return) for both plans. (Round your answers to the nearest tenth percent, X.X%) ARR % Plan A % Plan B Caciulate the NPV (not present value) of each plan. Begin by calculating the NPV of Plan A (Complete all answer boxes. Enter a "O" for any zer places, XXXX. Uso parentheses or a minus sign for a negative not prosent value) Plan A: Net Cash Annuity PV Factor PV Factor Present Years Inflow (i=10%, n=10) (i=10%, n=10) Value 1 - 10 Present value of annuity Den finns in Choose from any list or enter any number in the input fields and then continue to the next question. Present Net Cash Inflow Annuity PV Factor (10%, 10) PV Factor (-10%, n=10) Value Years +10 TO Present Value of annuity Present value of residual value Total PV of cash inflows 0 Initial Investment Nel present Value of Plan B Calculate the profitability index of these two plans. (Round to two decimal places XXX.) Profitability index Plan Plan B Requirement 2. What are the strengths and weaknesses of these capital budgeting methods? Match the form with the strengths and weaknesses listed for each of the four capital budgeting models. Capital Budgeting Method Strengths/Weaknesses of Capital Budgeting Method Choose from any list or enter any number in the input fields and then continue to the next question (Click the Comary operates a chain of sandwich shops Conditional formation Read the comments (Click the Capital Budgeting Method Strength Weaknesses of Capital Budgeting Method is based on cash flows, can be used to assess profitability, and takes into account the time value of money. It has none of the weaknesses of the other models is easy to understand is based on cash flows, and highlights risks However, it ignores profitability and the time value of money Can be used to assess profitability, but it ignores the time value of money It allows us to compare alternative investments in present value terms and it also accounts for differences in the investments initial cont. It has none of the weaknesses of the other models Requirement 3. Which expansion plan should Hill Company choose? Why? Hill Company should invest in because it has a payback period, a ARR, a net present value, and a Requirement 4. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of retur? The IRR (internal rate of return) of Plan A in between This rate the company's hurdle rate of 10% Choose from any list or enter any number in the input fields and then continue to the next

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