?O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,900,000. Under the other? proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,800,000. The following information is? available:

	Indiana proposal	Kentucky proposal
Required investment	$1,900,000	$2,800,000
Estimated life	10 years	10 years
Estimated residual value	$60,000	$70,000
Estimated annual cash inflows over the next 10 years	$200,000	$700,000
Required rate of return	10?%	10?%

The accounting rate of return for the Indiana proposal is closest to?

A. 7.37%

B. 10.53%

C. 15.25%

D. 0.84%