Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 304 Weeks Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Algebra Posted 29 Jul 2017 My Price 11.00

sandwich shops

Locos operates a chain of sandwich shops. 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 $1,600,000, with zero residual value at the end of 10 years. Under plan B, Locos would open three larger shops at a cost of $8,340,000. This plan is expected to generate net cash inflows of $1,100,000 per year for 10 years, the estimated life of the properties. Estimated residual value is $1,000,000. Locos uses straight-line depreciation and requires an annual return of 8%

Required

1. Compute the payback period, the accounting rate of return, and the net present value of these two plans. Assume a residual value of zero when calculating net present values. What are the strengths and weaknesses of these capital budgeting models?

2. Which expansion plan should Locos choose? Why? 3. Estimate plan A’s internal rate of return (IRR). How does the IRR compare with the company’s required rate of return?

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 09:07 PM My Price 11.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------

Not Rated(0)
Relevent Questions