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THIS IS AN EXAMPLE!! THE ACTUAL PROBLEM WILL BE UNDER. THIS WILL HELP TO SOLVE THE ACTUAL PROBLEM! THIS IS THE PROBLEM! PLEASE HELP ME
THIS IS AN EXAMPLE!! THE ACTUAL PROBLEM WILL BE UNDER. THIS WILL HELP TO SOLVE THE ACTUAL PROBLEM!
Requirement 1. Compute the payback, 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.) Caclulate the NPV (net present value) of each plan. Begin by calculating the NPV of Plan A. (Complete all answer boxes. Enter a "0" 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.) Calculate the NPV of Plan B. (Complete all answer boxes. Enter a "0" 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.) Calculate the profitability index of these two plans. (Round to two decimal places X.XX.) The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,425,000. Expected annual net cash inflows are $1,500,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Locos Company would open three larger shops at a cost of $8,000,000. This plan is expected to generate net oash inflows of $1,020,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000. Locos Company uses straight-line depreciation and requires an annual return of 10%. Present Value of $1 Future Value of Ordinary Annuity of $1 Lapos Company operates a chain of sandwich shops. (Click the icon to view Present Value of $1 (Click the icon to view additional information.) table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinarv Annuitv of $1 table.) Requirement 1. Compute the payback, 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.) The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,425,000. Expected annual net cash inflows are $1,500,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lapos Company would open three larger shops at a cost of $8,000,000. 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 B is $990,000. Lapos Company uses straight-line depreciation and requires an annual return of 8%. Present Value of $1 Present Value of Ordinary Annuity of $1 Fintura Valua af el Future Value of Ordinary Annuity of $1 THIS IS THE PROBLEM! PLEASE HELP ME GET TO THE ANSWERS TO THE PARTS I SENT AS AN EXAMPLE!
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