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O'Maly Department Stores is considering two possibile expansion plans. One proposal involves opening stores in Indiana at the cost of $1,800,000. Under the other proposal,
O'Maly Department Stores is considering two possibile expansion plans. One proposal involves opening stores in Indiana at the cost of $1,800,000. Under the other proposal, the company would focus on Kentucky and open stres a cost of $2,000,000. The following information is available: Indianapos Kentucky proposal Required investment $1.000.000 $2.000.000 Femalede Tyears 7 years Estimated residual value 370.000 500.000 Estimated annual cash intowe over the next years $200 000 600.000 Required rate of return 123 The payback period for the Kentucky proposal is closest to OA 5.00 years O 420 years OD 250 years OD 430 years Click to select your
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