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 accounting rate of return for the Indiana proposal is closest to
A) 10.32%.
B) 11.09%.
C) 20.83%.
D) 10.83%.
Correct Answer:
Verified
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