(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:

Consistency

The quality of achieving a level of performance or conducting oneself in a similarly predictable manner over time.

Sensitivity

The quality of being receptive or sensitive to external stimuli or the feelings of others.

Cognitive Stimulation

Activities or experiences that challenge and improve mental abilities such as memory, concentration, and learning.

Behavior Control

The methods and techniques used to change or manage an individual's actions or reactions in various situations.