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#4 O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,940,000. Under the

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O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,940,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,700,000. The following information is available: Indiana proposal $1,940,000 5 years $80,000 Kentucky proposal $2,700,000 Required investment Estimated life 5 years $70,000 $900,000 13% Estimated residual value Estimated annual cash inflows over the next 9 years Required rate of retun $200,000 13% The accounting rate of return for the Kentucky proposal is closest to (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.) O A. 33.33%. O B. 19.48%. lal OC. 13.85%. an O D. 13.00%. that ure

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