Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in...

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Beck 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 $2,600,000. The following information is available: Indiana proposal Kentucky proposal Required investment Estimated life Estimated residual value Estimated annual cash inflows over the next 10 years Required rate of return $1,920,000 7 years $20,000 $400,000 12% $2,600,000 7 years $80,000 $500,000 12% The accounting rate of return for the Indiana 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. 6.7% B. 5.38% C. 20.83% D. 19.79% Beck 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 $2,600,000. The following information is available: Indiana proposal Kentucky proposal Required investment Estimated life Estimated residual value Estimated annual cash inflows over the next 10 years Required rate of return $1,920,000 7 years $20,000 $400,000 12% $2,600,000 7 years $80,000 $500,000 12% The accounting rate of return for the Indiana 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. 6.7% B. 5.38% C. 20.83% D. 19.79%