OMally Department Stores is considering two possible expansion plans. Kentucky and open 6 stores at a cost of $2 600,000. The following information is available opening 5 stores One proposal involves opening 5 stores in Indiana at the cost of $1,850,000. Under the other proposal, the company would focus on Indiana proposal Kentucky proposal $2,600 000 10 years $50.000 $800,000 10% Required investment Estimated life Estimated residual life Estimated annual cash inflows over the next 10 years Required rate of return $1,850,000 10 years $60,000 5800,000 10% OMally should choose O Data Table EEB (Click the icon to view the present value of $1 table.) Present Value of Periods A. The Kentucky proposal which is 5750,000 higher than Indiana O B. The Indiana proposal which is S5753,860 higher than Kentucky 10% 4.868 5.335 5.759 6.145 78877.1396495 6.814 12% 4.564 4 968 5.328 5.650 5.938 14% 4.288 4.639 4.946 5.216 5.553 5 660 5.582 5.206 6 802 6.247 6.710 O D. The Indian proposal which is $10.000 higher thatn Kentucky 8.384 12 7536 Data Table Print Done ent Value of $1 Periods 14% 0.400 0 351 0.308 0.270 0237 12% 0.452 0.404 6% 0.665 0627 0.592o500 0 558 8% 10% 0 583 0.513 0.467 0 424 0.386 0.350 0.319 0 540 0 322 0 287 0.463 0 429 0.397 10 0 497 12 Print Done