O'Mally Department Stores Is Considering Two Possible Expansion Plans

question 87

Multiple Choice

O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,810,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,000,000. The following information is available: The accounting rate of return for the Indiana 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)23.67%.
• B)22.74%.
• C)38.67%.
• D)34.25%.