O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,880,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,000,000. The following information is available: Indiana proposal Kentucky proposal Required investment Estimated life Estimated residual life $1,880,000 10 years $2,000,000 10 years $80,000 $80,000 Estimated annual cash inflows over the next 10 years Required rate of return $500,000 $400,000 8% 8% The net present value of the Indiana proposal is closest to: Present Value of $1 Periods 6% 8% 10% 12% 14% 7 0.665 0.583 0.513 0.452 0.400 8 0.627 0.540 0.467 0.404 0.351 9 0.592 0.500 0.424 0.361 0.308 10 0.558 0.463 0.386 0.322 0.270 11 0.527 0.429 0.350 0.287 0.237 12 0.497 0.397 0.319 0.257 0.208 Present Value of Annuity of $1 Periods 6% 8% 10% 12% 14% 7 5.582 5.206 4.868 4.564 4.288 8 6.210 5.747 5.335 4.968 4.639 9 6.802 6.247 5.759 5.328 4.946 10 7.360 6.710 6.145 5.650 5.216 11 7.887 7.139 6.495 5.938 5.553 12 8.384 7.536 6.814 6.194 5.660 $1,512,040 $1,475,000 $1,437,960 $3,392,040.