O'Mally Department Stores Is Considering Two Possible Expansion Plans

question 80

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 $3,000,000. The following information is available: The accounting rate of return for the Kentucky proposal is closest to (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.)

• A)16.14%.
• B)13.86%.
• C)6)00%.
• D)30.00%.

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Definitions:

Pure Strategy Equilibria

A solution concept in game theory where players choose a single strategy that maximizes their payoff given the strategies chosen by the other players.

Swerve

In game theory, a strategy that involves a sudden change in direction or decision, especially to avoid a negative outcome.

Chicken

a domesticated bird commonly raised for its meat and eggs; also can denote a game in which two players head towards each other, and the first to veer away is considered the loser.

Payoff

The return or gain received from an investment or decision, representing the benefits accruing to the involved parties.