O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,870,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,300,000. 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 Indiana proposal $1,870,000 8 years $70,000 $800,000 12% Kentucky proposal $2,300,000 8 years $40,000 $700,000 12% The net present value of the Indiana proposal is closest to: (Click the icon to view the present value of $1 table.) IClick the icon to view the nracant value of annuity of $1 table A. $4,002,680. B. $2,076,120. C. $2,132,680. D. $2,104,400. Present Value of $1 Periods 6% 8% 10% 7 0.665 0.583 0.513 14% 0.400 0.351 0.308 8 9 10 0.627 0.592 0.558 0.527 0.540 0.500 0.463 12% 0.452 0.404 0.361 0.322 0.287 0.257 0.467 0.424 0.386 0.350 0.270 11 0.429 0.237 0.208 12 0.497 0.397 0.319 Present Value of Annuity of $1 Periods 6% 7 5.582 8 6.210 9 6.802 10 7.360 11 7.887 8% 5.206 5.747 6.247 6.710 7.139 7.536 10% 4.868 5.335 5.759 6.145 6.495 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 12 8.384 6.814