The payback period for the Kentucky proposal is closest to

Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost Of $1 Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of The following information is available: Required investment Estimated life Estimated residual value Estimated annual cash inflows over the next 9 years Required rate Of return The payback period for the Kentucky proposal is closest to 75 years 7.5 years 8.33 years 7.4 years Indiana proposal 5 years $60,000 $300,000 Kentucky proposal 5 years $40,000 $400,000