(Present value tables areneeded.) O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of$1,920,000. Under the otherproposal, the company would focus on Kentucky and open 6 stores at a cost of$2,500,000. The following information isavailable:

	Indiana proposal	Kentucky proposal
Required investment	$1,920,000	$2,500,000
Estimated life	10 years	10 years
Estimated residual value	$50,000	$80,000
Estimated annual cash inflows over the next 10 years	$400,000	$500,000
Required rate of return	10%	10%

The net present value of the Indiana proposal is closest to________ andwould/would not be a desiredproject?

A.

$1,171,800, would.

B.

$461,650, would not.

C.

$557,300, would.

D.

$538,000, would not. Click to select your answer.