(Present Value Tables Are Needed

question 112

Multiple Choice

(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 Indiana proposal is closest to

• A)$538,000.
• B)$557,300.
• C)$461,650.
• D)$1,171,800.

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Definitions:

Social Responsibility Strategies

Practices and policies initiated by a company to benefit society and operate sustainably beyond its profit-making interests.

Consumer Protection Agency

A governmental organization designed to protect consumers' rights and ensure fairness in the marketplace.

Maximize Profits

The primary goal of many businesses, which involves increasing the difference between the revenue generated and costs incurred by enhancing efficiency and market share.

Ergonomically Appropriate

Referring to designs or adjustments in the workplace that support the health and well-being of workers, aligning with principles of ergonomics to ensure safety and efficiency.