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O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,850,000. Under the
O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,850,000. 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: Required investment Estimated residual life Estimated life Estimated annual cash inflows over the next 10 years Required rate of retur Indiana proposal Kentucky proposal $1,850,000 10 years $60,000 $2,600,000 10 years $50,000 $800,000 10% 10% $800,000 O'Mally should choose (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) OA The Indiana proposal which is $753,860 higher than Kentucky. B. The Kentucky proposal which is $750,000 higher than Indiana. OC. The Indian proposal which is $10,000 higher thatn Kentucky OD. The Kentucky proposal which is $753,860 higher than Indiana. se of Ju
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