= Homework: Unit 4 Case Study to) Part 2 of 8 points Points: 0.71 of 5 Save Has Beans Inc. operates a chain of lunch shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,940,000. Expected annual net cash inflows are $1,650,000 with zero residual value at the end of ten years. Under Plan B. Has Beans would open three larger shops at a cost of $8,740,000. This plan is expected to generate net cash inflows of $1,100,000 per year for ten years, the estimated life of the properties. Estimated residual value is $975,000. Has Beans uses straight-line depreciation and requires an annual return of 8%. Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table (Click the icon to view the f Read the requirements. Requirement 1. Compute the p Begin by computing the paybac ePlan A (in years) 5 Plan B (in years) 7.9 Requirements 1. Compute the payback period, the ARR, and the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? 2. Which expansion plar-should Has Beans choose? Why? 3. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? X se capital budgeting models? M Now compute the ARR (accoun Plan A Plan B 5.4% % Print Done Help me solve this Video Get more help Clearall Cheak