Use the Information Below to Answer the Following Question(s)

question 85

Multiple Choice

Use the information below to answer the following question(s) .
Williams Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,800,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,400,000. The following information is available:

-The accounting rate of return for the Kentucky proposal is closest to

• A) 10.83%.
• B) 11.17%.
• C) 12.50%.
• D) 20.83%.