mastery 26. please help!

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Mastery Problem: Capltal Investment Analysis HomeGrown Company HomeGrown Company is a chain of grocery stores that are similar to indoor farmer's markets, providing fresh, local produce, meats, and dairy products to consumers in urban areas. HomeGrown is considering opening several stores in a new oty, and has proposals from three contractors (Alpha, Beta, and Gamma companies) who would like to provide bulldings for the new stores. The amount of expected revenue from the stores will depend on the design of the contractor. For example, if MomeGrown deddes on a more open floor plan, with less shelf space for products, revenue would be lower overall. However, if HomeGrown dedides on a very crowded floor plan, it may lose customers who appreciate a more open feel. As the project manager for HomeGrown, you are responsible for deciding which if any of the proposals to accept. HomeGrown's minimum acceptable rate of return is 20\%. You recelve the following data from the three contractors: You have computed estimates of annual cash flows and average annual income from customers for each of the three contractors' plans. You believe that the annual cash faws will be equal for each of the 10 years for which you are preparing your capital investment analysis. Your conclusions are presentred in the following table. - Method Comparison decide to compare four methadsi the average rate of return, cash payback neriod, nef present value, and internal rate of return methods. Average Rate of Return You begin by trying to eliminate any proposals that are not yielding, the company's minimum required rate of return of 20%. Complete the following table, and decide whether Mphs, Beta, and/or Gamma should be eliminated because the average rate of retarn of their project is less than the company's minimum required rate of return. Complete the following table. Enter the average rates of return as percentages rounded to two decimal places. Whether Alpha, geta, and/or Gamma should be eliminated because the average rate of return of their praject is less than the company's minimum required rate of retum. Complete the following table. Enter the average rates of return as percentages rounded to two dedmal places. Review the definition of average rate of return, and plug the relevant numbers into the formula from the data given. Cash Payback Method You've decided to confirm your results from the overage rate of return by using the cash payback method. Using the following table, compute the cash payback period of each investment, If reqused, round the number of years in the cash payback period to a whote number. * Ched u. Wior Review the definition of cash parbsex period, and put the relevant numbers into the formula from the data given. 4 more check My Won uses remaning Even though you're falrty certain that your evaluation and elimination is correct, you would like to compare the three proposals using the net present value method, and get some data about the intemal rate of return of the proposals, each of which are expected to generate their respective annual net eash inflows for a period of 10 years. Compute the net present value of each proposal. You may need the following partial table of factors for present value of an annuity of $1. Round the present value of annual net cash flows to the nearest dollar. If your answer is zero enter "O". For the net present value, if required, use the minus sign ( ) to indicate a negative amount. Present Value of an Annulty of $1 Tdeitack V Cresa Mr Was data given, making the indicated computations. Final Questions