(Present Value Tables Are Needed

question 20

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:

Observations

The instances or data points collected or recorded for the purpose of analysis.

Coefficient of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution.

Weights

Quantitative values assigned to elements of a set as a measure of their importance or influence in statistical calculations.

Grouped Data

Data that has been organized into groups or categories, often used in statistics for more efficient data handling and analysis.