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

question 6

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 net present value of the Indiana proposal is closest to

• A) $461,650.
• B) $658,000.
• C) $677,300.
• D) $1,291,800.

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Definitions:

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership interest in a company.

Assets

Assets refer to resources owned by a company that have economic value and can be used to meet debts, commitments, or investments.

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but instead reinvested in the business or held as reserves.

Assets

Assets are resources owned by a business or individual, which provide economic value or are expected to generate future benefit.