O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,960,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $3,000,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,960,000 $3,000,000 Estimated life 8 years Estimated residual life $80,000 $40,000 Estimated annual cash inflows over the next 10 years $400,000 $300,000 Required rate of return 8% 8% 8 years The net present value of the Indiana proposal is closest to: E: (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table O A. $295,600 O B. $338,800 OC. $382,000. OD. $2,342,000. O'Mally Department Store proposal, the company w Required investment Estimated life Estimated residual life Estimated annual cash in Required rate of return Present Value of $1 Periods 7 8 6% 0.665 0.627 0.592 0.558 0.527 0.497 9 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 The net present value of 10 11 12 0.208 (Click the icon to vie PA (Click the icon to vie O A. $295,600 Data Table OB. $338,800 O C. $382,000. OD. $2,342,000 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 10% 4.868 5.335 5.759 6.145 6.495 6.814 12% 4.564 4.968 5.328 5.650 14% 4.288 4.639 4.946 5.216 5.553 5.660 5.938 7.536 6.194