X P26-31A (similar to) Requirements (Click to Limes Company operates a chain of sandwich shops Click the icon to view additional information Read the requirements Click (Click (Click 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 Limes Company choose? Why? 4. Estimate Pan A'SIRR How does the compare with the company's required rate of return? 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 XX) Print Done Payback years Plan A Plan B years The company is considering two posible expansion plans Plan A would open eight small shops at a cost of $8.425.000 Expected annual net cash flows are $1,550,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Limes Company would open tree larger shops at a cost of $0.100.000 This plan is expected to generato no cash inflows of $1.070,000 per year for 10 years, the estimated useful life of the properties. Estimated residus value for Pan Bis 1,300.000. Limes Comparisos straight line depreciation and requires an annual rum of 10 Choose from any list or enter any number in the input fields and then click Check Answer 8 ports remaining Clear All LL