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6) OMally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,920,000. Under the
6) OMally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,920,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $3,000,000. The following information is available: Kentucky Indiana proposalproposal $3,000,00 $90,000 $900,000 Required investment $1,920,000 $40,000 S600,000 stimated life ea stimated residual value timated annual cash inflows over the next 9 ears equired rate of return 6% 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%.) A) 16.14% B) 13.86%. C) 6.00%. D) 30.00%
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