- Click The Icon To View Lolas Company Operates A Chain Of Sandwich Shops Click The Icon To View Additional Information 1 (34.04 KiB) Viewed 50 times
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COMO натур e of $1 table.) More info - X je of Ordinary Annul and The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8.440,000. Expected annual net cash inflows are $1.550.000 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 is expected to generate net cash inflows of $1,050,000 per year for 10 years, the estimated useful life 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% ETS to Print Done
We of $1 table.) Requirements - Х le of Ordinary Ann 4 ind 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 Lolas Company choose? Why? 4. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? 10 Print Done
f$1 table) S1 table) Present Value of $1 Periods 1% 2% 3% 496 5% 6% 71 0% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0962 0.962 0.943 0.935 0.926 0917 0.9090.893 0877 0.870 0.862 0347 0.833 Period 2 0.980 0.961 0943 0.925 0.9070.890 0.873 0857 0.8420826 0.797 0.7690 756 0.743 07180.594 Period 3 0.971 0942 0915 0.889085408400816 0.794 0.772 0.751 0.712 0 575 0.668 06410.609 0579 period 4 0.96109240838 0 855 0.823 07920763 0735 0708 0.683 063605920572 0.552 0.516 0.482 Period 5 0.951 0.9060 863 0822 0.784 0.747 0.713 0681 06500621 0.587 0.519 049704760437 0.402 Period 6 0.942 0 388 0.837 0.790 07460.705 0666 0630059805840 50704560432 04100 3700335 period 7 0933 0.8710813 0.750 0.7110.6650 623 05830547051304520.400 0.376 0.354 0.3140 279 Period 8 0.923 08530789 0.731 0.6770627 0.682 0540 0502 046704040 351 03270.305 0.266 0233 Period 9 0914 0 BAT0.766 07030645069205440.5000 4500 424 0361 030802040263 0225 0,194 Period 10 0.9050 8200744 0678 0614055805080463 0.42203860322 0 2700 2470 227 0.1910 162 Period 11 0.898 0.804072200500.550.627047604290338 03500 287 0237 0216 0.16 0.1620 135 Period 12 0887 0789 0.701 0 625 056704970444 0 397 0.3380319 0.25 0 2000.187 0.168 0.37 0.112 Period 13 0.879 0.773 0.681080105300469041503880 32502900229 018207630145010093 Period 14 0.870 0.750 0601 0.577 0.50504420388 03400 299 2880 2050.1800.141 0.125 0.0990078 period 15 0861 0.7490.64256604810417 0.362 0915 02750239 0.18 0.14001230108 0.08 0.066 Period 16 0.853 0.7280 623 0534 04580.39408590292 0252 02100 1530 1230 107 000 000054 Period 17 0.844 0.714060505130436 0.371 03170270 0.231 0 198 0.14001000000000000500045 Parat Done
$1 table) $1 table) Period 14 0.870 0.758 0661 0577 0.505 0.442 0.3880340 0299 0 263 0.205 0.1600.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.542 0.565 0.48104170362 0.315 02750 239 0.183 0.140 0.123 0.108 0.0840065 Period 16 0.853 0.7280.623 0534 0.45 0.394 0.3390292 0252 0218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.505 0.513 0.436 0371 0317 0.2700231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.7000.587 0.494 0.4160350 0.296 0.250 0.212 0.180 0.1300095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.4750 3960.331 0277 0.232 0 1940.164 0.116 0083 0.070 0.060 0.0430031 Period 20 0.820 0.673 0.554 0.456 0.377 0.3120.258 0215 0.178 0.149 0.10400730051 0.051 0.037 0.025 Period 21 0.811 0.660 0.5380439 0.359 0.294 0 242 0.1990.1640 135 0.093 0.064 0.053 0.0440031 0.022 Period 22 0.003 0.647 0522 0.422 0.342 0.278 0.22601940 150 0.123 0.003 0.055 004 0038 0.025 0.018 Period 23 0.795 06340 50704080328 0.262 0.211 0.170 0138 0.11200745049 0.0400033 0.022 0.015 Period 24 0.788 0.622 04920 3900 3100.2470 1970 158 0.1260 1020.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.5100478 0.375 02950 233 0.184 0.146 0.16 0 092 0.059 0038 0.0300024 0.0160010 Period 26 0.772 069304540361 02810 2200 1720 1350108 0.0840053003300200021 00140.009 Period 27 0.7640598 0.450 0.34702680 207 0.160.125 0.0980076004700290.02300180011 0.007 Period 28 0.767 0.5740437 03330256 0.1980 1500116 0.090005 00420.0280020001600100006 Period 29 0 7490.563 0424032102430 185 0 143 0.107009200630097 0.022 0.017 0.014 0.003 0.005 Period 30 0.7420 55204120302028101740131 099 09750057 0.093 0.020 0,015 0,012 0.007 0.004 Period 40 0.672 0453 0.307 0.2030 1420.097 0067 2048 0.03200280011 00050004000300010001 Period 50 0.5000372 0228 0.14 0.087 0.05400320021083 000 0.003 0.001 0.001 0.001
151 table $1 table) Present Value of Ordinary Annuity of $1 Periods 15 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 15% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.962 0.943 0.935 0926 0917 0.909 0893 0.8770870 0.8620.847 0833 Period 2 1970 1942 1.913 1.886 1.859 1.833 1.808 1.783 1759 1736 1.6901847 1626 1606 1 566 1528 Period 3 2941 2.884 2829 2.775 2723 2673 2624 26772531 2487 24022 322 2283 2246 2.174 2.106 Period 4 3.902 3.808 3717 3.630 3.546 3.4853.387 3.312 3.240 3.170 3.037291428552798 2690 2.589 Period 5 4.853471845804452 4.3294212 4.100 3.993 3.890 3.791 3.6053439 3.362 3.274 3127 2.991 Period 6 5.7965601 5417 5242 50764917476746234486 435641113.889 3.78436853498 3326 Period 7 6.7288472523080026 786 6,502 5.389 62065033496845644.288 416040393.812 3605 Period 8 7.652 7.325 7020 8.733 6.463 6.2105.971 574765356335496846394487 434440783837 Period 9 8,5663 15277957435 71086 802 65156247 6.995 57595328 49464772 45074309 4031 Period 10 9.471 8.9538530 8.111 7722738070246.71064186.1456650 6216 5019 4833 4 494 4.192 Period 11 103689.7870253 8.700 8.306 BT 7499713968056495 59386453 5234 5.02945564327 Period 12 11 255 105759 954 93053863838479437538715158348.194 6660 5421 5.1974793 4439 Period 13 12.134 11.348 10 635 998693948.853 8.3507.00474877.1038424584255835342 49104533 Period 14 13.00412106112951055398990295874582447786738768206.002 572454585.0084611 Period 15 13.855 12.94911.93817 118 10 3809712 91083959 8 0517506811814268476575 5.0924675 Period 16 14 718 13.578 12 561 11 652 10.836 10 100 944730512313722469746285 595458895 1624 730 Period 17 15.562 14292 1310612 166 11 2740477 97839222342802271206373.4757495222 4775
Rererence f$1 table $1 table ac Period 14 13.004 12 106 11 296 10.563 9.899 9.295 8.745 8.244 778673676.6286.002 5.7245 468 5008 4611 Period 15 13.865 12 849 1193811.118 10 3809712 9.1088.669 8.06 7.606 6811 6.142 5.8475575 60924675 Period 16 14.718 13.578 12.561 11.652 10.838 10.10894478 851 8.313 7.824 69746.2655 9545.600 5.162 4730 Period 17 15.562 14 292 13.166 12 168 11.274 10.477 9763 9.122 8.5448.022 7.120 6373 6047 5749 5222 4775 Period 18 16398 14992 13.754 1265911.690 10 828 10.05993728.75682017.250 6.4676.128 6.818 5.2734812 Period 19 17.226 15.678 14,324 13 134 12.086 11.158) 10.336 0 604 896083667366485.5606.198 5877 5.3164344 Period 20 18.046 16 351 14.87713 590 12.462 11.470 10 594 98189 129 851474696.623 62595.92953534870 Period 21 18.857 17 011154155402912 82111764 10836 10.0172928.649 7.5626 687 63126.97353844891 period 22 19.65017858 15937 14 4511318312042 11081 10 201 9442 877278456743 83596.01154104.909 period 23 20.458 18 2921644414 867 13.489 12 30311 272 1037125808.88377186792 5.399 6.0445432 4925 Period 24 21.24318.914 16.936 15 247 13 79912650 11450 10529707896577848.83584346.073 5451 4937 Period 25 22 023 19 52317.413 15.622140941279311 65410676982080777843687364646097 64674948 Period 26 2279520 121 17 877 15 98314 37513 0031182610810092991617896690864916.118 6480 4956 Period 27 22 560 20 70718 827 16 3301464313 21117987109380027 023179436.935 6514613564924964 Period 28 24 31821.261 18.7546,6831405813.405 13705110 116 0779346.95165346.152 55024970 Period 29 25 065 21.34419 B 16 98415,14159112 27811 1989 370 30226.983 555 8.186 55104975 Period 30 25 808 22 396 19600 17 292 15 372113785 274 422 30667000 6588 6.177 5517 4979 Period 40 32.35 27 355 23.105 1079317159150451333219251075797798247105 684223355494999 Period 50 29.98 31.424 25 730243210 256 15780 1812233 953 09152304713386824055544999
ech satio Annuity of $1 table) nnuity of $1 table.) AR Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Future Value of $1 15 2% 3N 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1020 1030 1040 1050 1.060 1070 1080 1.090 1.100 1.120 1.140 1150 10201040 1061 1.0821.103 11241.145 1166 1.18812101254 1300 1323 1030 1.061 1093 1.125 1.1581.191 1.225 1.250 1.29513311406 1.482 1.521 1041 1.0821126 1.17012161 2621.31113501412 1464 15741689 1749 1051 1.104 1.159 1.217 1276 1.338 1.403 1.459 1.539 1.611 1.762 1.925 2011 1.052 1.126 1.1941.265 1.340 1419 1.50+ 1.687 16771.772 19742.1952313 1072 1.149 1230 1.316 140715041606 1.7141.82819492211 2502 2660 1083 1.172 1.267 1.369147715941718 1.851 | 1993 2144 2476 2863 3059 1.094 1.195 1.305 1423 1551 16391838 1999 2 17223582.77332523.518 1.105 1219 13441480 1.62917911 967 215923572694 3106 3.7074046 1116 1.24313841539 1710 1898 2 10523322680 2853 3.479 4226 4652 1.127 1.268 1.42818011796 | 2012 | 2252 2518 2.8133138 3.896 4818 5350 1.138 1.294 14891885 1886 2133 2410 2720 3.0508 452 4363 54926153 1 149 181915131732 1.98022512670 2.937 33423798 887 62617076 1:1511348 1558 180120792397275931723.542 41775 47471388.137 11731373 | 16051873 2133254020523498397046956.130.1372358 1.1841400 1653 1.946 2292 2 890915 5.700 4.3205.0545.866927610 76 and y Period 16 Period 17
Sio . Annuity of S1 table) nnuity of 51 table) AR Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 period 40 Period 50 1.149 1319 1.513 1.732 1.980 2.251 257929373 342 3.798 4.887 6.261 7076 1.161 1 346 1.5581.801 2079 2397 27593.172 36424 1775,474 7.138 8.137 1.173 1373 1.606 1.8732 183 2540 2952 3.426 3970 4596 6.130 8.137 9358 1.184 1.400 1653 1.948 2292 2693 3.159 3.700 43285.0546.866 9.276 10.75 1.196 1428 1.7022026 240728543.380 3996471755607 690 1058 12 38 1.208 1457 1754 2.107 2527 3.026 361743165142 6.116 8613 12.05 1423 1.220 1486 1.806 2.191 2653 3.20738704661 56046.7279646 13.74 16:37 1.232 1.5161.860 2279 2786 3.400 4.141 503461097400 10.80 15.67 18.82 1.245 15461916 2370 2.9253604443054376.659 8.140 12 10 17 862184 12571577 1974246530723.820 4.745.87172588.954 1356 20 36 2489 1.270 808 2033 2563 3.22540496072634179110 850 1518 23 21 28,63 1282 1.841 2094 2650 3386 4 2925 427 6.8488.623 10 B3 17.00 26.48 32.92 129516732157 2.772 3 566 25495.8077398399119219.04.2017 37 86 1.306 1.707 2 221 2883 3 733 4822 8214 7.988 10 25 13.11 21.82 34.394354 1.021 1741 2 209 29993920 5.1126649 2.527111712422388 39 205007 1.335 1.7762 357 3.19 4 116 5418711493171211 15.86 2575 4469 5758 13481811242732434 32257437812100613271745299650 95 66.21 148922083 2024 2017040 10 29 14721723121452693051389267-9 1.64526924384710711471342 29.469074361114 289.0 700 2 1084 By
Annuity of 51 table 45 5% Innuity of $1 table Penods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Future Value of Ordinary Annuity of $1 1% 2% 3% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 2120 2140 2.150 3.030 3060 3.091 3.122 3.1533.1843.215 3.246 3.278 3.310 3374 3.440 3:473 4060 4122 4184 4246 4310 4.375 4.440 45064573 4641 4779 4.9214993 5.101 5.204 5.309 5 416 5.526 5.637 5751 58675.9856.105 6.353 6.610 6.742 6.152 6.308 6468 66336.8026.9757.1537.3367.523 77168.115 8.536 8.754 7214 7.4347562|78988.142 8.39486548 923 9200 9.487 10.09 10.73 11 07 8.286 8.583 | 889292149.549 9.897 10 260 10.64 1103 11:441230 13 23 13.73 9.369 9.75510 16 10.58 11.03 11.49 119 12.4913.02 13.5814 78 16.09 16.79 10.46 10 95 11 46 1201 12:58 13.18 13.82 14.49 15.1915.94 17.56 19 34 20 30 115712 171281 13 49142114 97 1578 1885 17.56 18.53 20 65 23 042435 12 68 13:41 14 19 15.03 15.9218.87 17.8918 98 20.142138 24 13 27 2729.00 13 81 14 681562 16.63177118.88 20 14 2150 2205 24 62 2803 3209 34 35 14.96 15.97 17.09 18:29 19 60 2102 2255 2421 26.02 2790 32 39 37 58 40 50 16.10 17.2918 60 20 022158 23.28 25 13 27 15 29.331.773728 43.844758 1726 1864 2015 21 8223.66 256727893032330035054275 50 98 5572 18 43 20 01 21 76 28 70 25 34 28 21 33 84337538 9746.5 48.38591265.08 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17
natio Period 14 Period 15 Annuity of $1 table) nully of 51 table.) he AR 14.95 15.97 17.09 18.2919.60 2102 2255 2421 26.02 27.98 32.39 37.58 40.50 16.10 17 29 1860 20 02 21.68 23 28 25.13 27 15 29.3631.77 37.28 43 84 4758 17 26 18.64 20.16 21 B2 23.66 2567 27 89 30 32 33.00 3595 42.75 50 98 5572 18.43 20 01 21.78 23.702584 2821 30.84 33.75 36.97 40 54 48 88 59.12 6508 19.61 21.41 23.4125 55 28.13 30.91 34,00 37.45 4130 45,60 56.75 60.39 75.84 20.81 2284 25.12 27 67 30.54 33.76 37 38 41.45 46.02 51.16 63.447897 88 21 22.02 24 30 26 87 29.7833.07 38 79 4100 45.76 51 16 57.28 72.05 9102 1024 23 24 25 78 28 68 3197 35.72 39.994487 50 42 58.8 84.00817010481188 24.47 27 30 30.543425 38.51 43.39 49.01 5546 62877140 02:50 1204 1376 25 72 2885 32 45 35.62 41 43 47.00 53.44 50896953 1954 1046 1383 169.3 289730 42 443 390844505082 58.18 6876 78 79 88.50 11821587 1842 28 2432 0336.46 41 6647735435 63.25 73.11 847098.35 1333 181.92128 29 53 336738 55 443151.1159.16 888079.95 93 32 109 2150320032457 3082 353440714708 54 67 69717448 87 35 102.7 12111694 2385 2036 32 1337 054293 49,97 58.40 88.53 3070 95,3411301342190727293271 33453879 45 22529782 32 7354273610401241485 214631213772 3478 40 574758 08564479069448113313631545 2413050 34347 48.8950 475 409503120815481098 2591379428757,1 1,342.779 5445458 11281527 2093 203 4065 531 315 0.1542.4004995215 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 period 23 Period 24 Period 25 period 25 Period 27 period 28 Period 29 Period 30 Period 40 Period 50 undy Point Done