O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,890,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,900,000 .The following information is available: Indiana proposal Kentucky proposal $1,890,000 5 years $80,000 $700,000 13% $2,900,000 5 years $70,000 $800,000 13% Required investment Estimated life Estimated residual value Estimated annual cash inflows over the next 9 vears Required rate of return and O'Mally would accept or reject the The payback period for the Kentucky proposal is closest to proposal desired payback is.3 O A. 3.97 years and accept. B. 3.63 years and reject O C. 3.54 years and reject O D. 41.43 years and accept