O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,910,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,500,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,910,000 $2,500,000 Estimated life 8 years 8 years Estimated residual life $40,000 $80,000 Estimated annual cash inflows over the next 8 years $300,000 $800,000 Required rate of return 12% 12% The net present value of the Kentucky proposal is closest to: Click the icon to view the present value of $1 table.) PA (Click the icon to view the present value of annuity of $1 table O A. $4,006,720 OB. $1,442,080 OC. $1,474,400 OD. $1,506,720. Data Table he other O'Mally Departi proposal, the co Required inves Estimated life Estimated resid Estimated anny Required rated Present Value of $1 Periods 7 8 9 10 11 12 6% 0.665 0.627 0.592 0.558 0.527 0.497 8% 0.583 0.540 0.500 0.463 0.429 0.397 10% 0.513 0.467 0.424 0.386 0.350 0.319 12% 0.452 0.404 0.361 0.322 0.287 0.257 14% 0.400 0.351 0.308 0.270 0.237 0.208 The net presen E: (Click the i PHA (Click the Data Table O A. $4,006 OB. $1,442 O C. $1,474 OD. $1,506 Present Value of Annuity of $1 Periods 6% 7 5.582 8 6.210 9 6.802 10 7.360 11 7.887 12 8.384 8% 5.206 5.747 6.247 6.710 7.139 7.536 10% 4.868 5.335 5.759 6.145 6.495 6.814 12% 4.564 4.968 5.328 5.650 5.938 6.194 14% 4.288 4.639 4.946 5.216 5.553 5.660