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: Required investment Estimated life Estimated residual life Estimated annual cash inflows over the next 10 years Required rate of return The net present value of the Indiana proposal is closest to: Indiana proposal Kentucky proposal $1,880,000 10 years $2,000,000 10 years $80,000 $80,000 $500,000 $400,000 8% 8% 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