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 $2,200,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,850,000 $2,200,000 Estimated life Estimated residual life $60,000 $90,000 Estimated annual cash inflows over the next 10 years $100,000 $600,000 Required rate of return 12% 12% 10 years 10 years The net present value of the Kentucky proposal is closest to: (Click the icon to view the present value of $1 table.) Click the icon to view the nresant value of annuit of $1 tahlel A. $1,161,020. B. $1,218,980. C. $1,190,000. D. $3,418,980. Present Value of $1 Periods 6% 8% 14% 7 0.583 0.400 8 0.665 0.627 0.592 0.558 0.527 0.497 10% 0.513 0.467 0.424 0.386 0.350 0.540 0.500 0.463 0.429 0.397 9 10 12% 0.452 0.404 0.361 0.322 0.351 0.308 0.270 0.237 0.208 11 0.287 0.257 12 0.319 10% 8% 5.206 5.747 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 12% 4.564 4.968 5.328 5.650 5.938 4.868 5.335 5.759 6.145 6.495 6.814 6.247 14% 4.288 4.639 4.946 5.216 5.553 5.660 6.710 7.139 7.536 6.194