payback period,

Locos company is considering 2 possible expansion plans. Plan A: open 8 smaller shops, cost $8,410,000, expected annual net cash inflows $1,650,000, no residual value at the end of 9 years. Plan B: open 3 larger shops, cost $8,340,000, net cash inflows $1,120,000 per year for 9 years, estim…