(Present value tables are needed.) 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 other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,500,000. The following information is available:
The net present value of the Kentucky proposal is closest to
A) $557,300.
B) $572,500.
C) $603,380.
D) $684,600.
Correct Answer:
Verified
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