O'Mally Department Stores Is Considering Two Possible Expansion Plans

question 48

Multiple Choice

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 payback period for the Kentucky proposal is closest to

• A)4.5 years.
• B)6.25 years.
• C)5.00 years.
• D)31.25 years.

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Definitions:

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Performance Measurement

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Achieving Mission

The process of executing strategies and actions to fulfill the core purpose and goals of an organization effectively.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.