O'Mally Department Stores Is Considering Two Possible Expansion Plans

question 97

Multiple Choice

O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,850,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,600,000. The following information is available: The net present value of the Kentucky proposal is closest to:
Present Value of $1
Present Value of Annuity of $1

• A)$2,296,700.
• B)$2,316,000.
• C)$2,335,300.
• D)$4,935,300.

---

Definitions:

Obsessions

Persistent, unwanted, and intrusive thoughts, images, or urges that cause significant anxiety or distress.

Hallucinations

Perceptions or sensations experienced without the presence of external stimuli, often auditory or visual in nature.

Compulsions

Are repetitive behaviors or mental acts that a person feels the need to perform in response to an obsession or according to rigidly applied rules.

Dissociative Fugue

A rare psychological state in which a person temporarily loses their sense of personal identity and may impulsively travel or wander away from their usual surroundings.