ble) Read the View by Requirem SAT Calculate Plan A Plan B Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 09710.962 0.952 0943 0935 0926 0917 0.909 0893 0877 0.870 08620847 0833 0.980 0961 0943 0.925 0.9070.8900873 085708420826 0.797 0.769 07560743 0718 0694 3 09710942 0915 0.899 08640 8400816 0.794 0772 0.751071206750 658 06110.609 0579 4 096109240888 0855 0.823 0 7920763 0.735 0.708 0.683 0.636 0592 0.572 0552 0.516 0482 5 09510 906 08630 822 0.784 07470713 0 650 0621 0567 05190497 0476 0437 0402 6 09420888 0.837 0 79007460 705 0666 0630 05960564 0.507 0456 0432 0410 03700335 7 0.93308710813076007110 665 0623 0.583 054705130452 0400 0.376 035403140279 8 0.923 0.853 0.7890731 06770627 05820540 0502 04670404 0351 03270 305 0 266 0 233 9 0.91408370 766 0.703 06450592 0544 0 460 0424 0.361 03080200263 02250 194 10 0.9050820 0744 0676 06140558 0508 0463 0422 0386 022 0270 0247 0 227 0 1910 162 11 0896080407220650058505270475 04290388 03500 28/02370215019601620135 12 0887 0.788 0.701 0625 0.557 0.49704440 397 0356 0319 0257 0208 0.187 0 1680 1370. 112 13 0.879 0773 0681 060105300 46904150368 0 3260290 0229 0182 01630 1450 1160093 14 0 870 07580 661 05770505 044203880340 2990 2630 2050 160 0.1410 125 00990078 15 0.861 0.743 0.64205550481 0417 0362 0315 0 2750 239 0.1830 1400 1230.10000040065 16 0853 0728 0.623 0534 0458 0394 03390 292 0252 0218 0 1630123 0.1070093 00710054 17 0.844 0714 0 605 05130436 0371 03170270 0231 0.198 0.146 0 1080093 0.08000600045 10 Inn 0.02 y In nullo 2012 10.1 anno In 1 IngL05 23 Calculate Plan A Plan B Caclulate amounts the alue) Plan A: $1 table Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Req 1 0.990 0.980 0971 0.96209520.943 0.935 0.926 0917 0.909 0.893 08770870 086208470833 2 1.970 1.942 1913 1 886 1859 1833 1808 1.783 1.759 1736 1690 1647 1.626 1.605 1.566 1.528 Cald 3 2941 2884 28292775 2.723 2673 2624 25772531 2487 24022 322 2283 2246 2 1742 106 4 3.902 3.808 3.717 3.630 3.546 3465 3 387 3312 3 240 3 170 3.037 2 914 2855 2.798 2690 2589 5 4.853 4.713 4580 4.452 4329 4212 4 100 3.993 3.890 3.791 3.605 3.433 33523274 3.127 2991 6 5.795 5.601 5.417 5242 5.076 4.917 4767 4.623 4.486 4355 4 111 3 889 3784 3685 3.498 3326 7 6.728 6.472 6230 6.0025.786 5582 53895 206 5033 486845644288416040393812 3 605 8 7.6527325 7020 6733 6.463 6.210 5971 5747 5535 5335 4.9 535 5335 4.968 463944874.314 4 078 3.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6247 5995 5759 53284946 4772460743034.031 10 9471 89838530 8111 77227360 7024 6710 6418 6.145 5.650 5216 5019 4833 44944 192 11 10.36897879 2538 760 8 30678877499 7 139 6805 6.495 5938 5453 5234 5.029 4656 4327 12 11.255 10575 9.954 9 385 8863 8 384 7943 7 161 6814 6.194 5660 5.421 5.197 Plan 4.793 4439 13 12.134 11 348 10 635 9.986 93948.85383587 904 74877 103642458425583 53424 9104533 Cac 14 13 004 12 106 11 296 10 563 98999 295 8745 82447.786 7367 6628 6002 5.724 5468 50084611 amo 15 13.865 12 849 11938 11 118 10 3809712 9.108 8559 8061 7 606 6811 6.142 5 847 5575 5.092 4.675 Plan 16 14.718 13.578 12561 11652 10838 10 106 9.447 8851 83137 824 6974 6 265 5954 56695 1624.730 17 15562 14 292 13.166 12 166 11 274 10.477 9763 9.1228544 8022 7.120 6373 601757495 222 4775 Chod 1599 bes or sent value) Jor 51 table) ement 1.cd ate the paybe 2196 late the ARR Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1 1.010 1020 1030 1040 1050 1060 1070 1080 1090 1.100 1.120 1140 1.150 2 1020 1.040 1061 108211031.1241.145 1166 1.188 1210 1.254 1300 1323 3 1.030 1061 1093 1.125 1.158 1.191 1225 1260 12951331 1.405 1.482 1.521 4 1.041 1.082 1.126 1.170 | 12161 262 1311 1.360 1.4121.464 1.574 1689 1.749 1051 1.104 1.159 121712761338 1.403 14691539 1611 1762 1925 2011 1.062 1.1261194 1265 1340 1419 1501 1.772 1974 2313 1.072 114912301.316 1.40715041606 2660 1,083 1.172 1.2671369147715941718 3059 1.094 1.195 1305 1423 1.551 1.689 1838 2358 277332523518 10 1.105 1219 13441480 1.629 1791 1967 3.106 37074046 11 1.116 12431384 1539 1710 1898 2 105 2853 3.479 4 226 4652 12 1.127 1268 1426 1601 1796 2012 2252 3.138 4818 5350 13 1.138 1 294 1469 1665 1886 2133 2410 3066 3.4524363 5.492 6.153 14 1.149 1 319 15131732 1980 22612579 3.798 4 887 62617076 1.1611346 1558 4.177547471388.137 1173137316051873 2183 2540 29523 426 39704595 6.1308 137 9358 1 184 1 400 1653 229226933 159 37004328 5054 6866 9 276 1076 1R11061228 122 126 127 12854.12.2014 212 15 17 10 12 20 2594 3896 lulate the NPV unts that do no 1801 10 lances of present value) 21 17 ose from any Lol Silable) View uirement 1.ca Culate the payba an A an B alculate the ARR Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 8% 9% 10% 12% 14% 15% 1 1.000 1.000 1000 1000 1000 1000 1000 1000 1000 1.000 1.000 1.000 1.000 2 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 2120 2140 2 150 3 3.0303060 3091 3122 3153 3 184 3215 3 246 3278 3 310 3374 3.440 3473 4 4060 4.122 4184 4 246 43104 375 4440 4506 4573 4641 47794921 4993 5 5101 5204 5309 5416 5526 5637 5751 5 867 5985 6 105 6353 6610 6742 6 61526308 6.468 6633 68026975 7 153 7336 7523 7716 8115 8536 8754 7 72147434766278988 1428 3948654892392009487 1009 10.73 1107 8 8286 8583 8892 9 214 9 5499 897 10 260 10.64 1103 11 44 12 30 13 23 13 73 9.369 9.755 10.16 10.58 1103 1149 1198 1249 13 021358 14.78 1609 16.79 10 10.46 1095 1146 1201 1258 13 18 13 82 14 49 15.19 1594 1755 1934 2030 11 1157 12 17 1281 1349 1421 1497 1578 1665 1756 1853 2065 2304 2435 12 12 68 1341 14.19 1503 1592 1687 1789 1898 20 14 21 38 24 13 2727 2900 13 1381 14 68 1562 1663 1771 18 88 20.14 2150 2295 24 52 28 03 3209 34 35 14 1495 15971709 18 29 19 60 2255 2421 26 02 2798 3239 3758 40.50 15 16.10 17 29 18.60 2002 27 15 29.36 3177 3728 43 84 4758 1726 18 64 20 16 2182 2366 30 32 33 00 3595 4275 5098 5572 17 1843 20 01 2176 2370 25 84 3084 3375 3597 4054 4888 59 12 6508 191 1961 2141 n11.25.65. 13 191 um 27451 41 1 55 75 LA 29.1754 H TML Plan A Plan B Saclulate the NPV amounts that do not lancos or present value) 2158 2513 Plan A: Choose from any * More Info quirement 1. Compute the payba alculate the payback for both plans lan A The company is considering two possible expansion plans Plan A would open eight smaller shops at a cost of $8,425,000. Expected annual no cash inflows are $1,500,000 for 10 years, with zero residual value at the end of 10 years Under Plan B, Lolas Company would open three larger shops at a cost of $8,300,000 This plan expected to generate net cash inflows of $1,000,000 per your for 10 years, the estimated useful of the properties. Estimated residual value for Plan B is $1.200.000 Lolas Company uses straight line depreciation and requires an annual return of 10% lan B alculate the ARR (accounting rate Man A Plan B Print Done Requirement 1. Compute the payback the ARR, the NV, and the profitability index of Calculate the payback for both plans (Round your answers to one decimal X ol SINE 1 Plan CMS Plan B Calculate the ARR (accounting one of return) for both plans for ILU Plan Plan B Caciulate 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, XXX Use parentheses or a minus sign for a negative net present value) Net Cash Plan A: Years 1-10 Annuity PV Factor 6-10%, n=10) PV Factor (i=10%, n=10) Present Value Inflow Present value of annuity 10 Present value of residual value Total PV of cash inflows 0 Initial Investment Net present value of Plan A Calculate the NPV of Plan B (Complete all answer boxes Entera or for any zero balances or amounts that do not apply to the plan Enter any factor amounts to three decimal places XXOOX Use parentheses or a minus sign for a negative net prosent value) Plan B: Net Cash Annuity PV Factor PV Factor Year's Inflow 6-10%, n=10) (1 10%, n=10) Value 1-10 Present value of annuity 10 Present value of residual value Total PV of cash intlows 0 Inbal Investment Na Calculate the profitability index of these two plans (Round to two decimal places XXX) Profitability index Plan A Plan B Match the term with the strengths and weaknesses listed for each of the four capital budgeting models Capital Budgeting Method Strengths/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 profitably, but it goes the time value of money wlows us to comparatamative investments in present value forms and it also accounts for differences in the investments in a cost it has one of the weaknesses of the other mods not present value, and proffability Requirement 3. Which expansion plan should cons Company choose? Why? Lolas Company should invest in Ocause it has a payback period, ARR, a index Requirement 4. Estimate Plan A'SIRR How does the IRR compare with the company's required to of rotun? The IRR (intomal rate of rotum) of Plants between This rate w the company's hurdlo rate of 10%