Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at

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Beck Department Stores Is Considering Two Possible Expansion Plans One Proposal Involves Opening 5 Stores In Indiana At 1 (106.93 KiB) Viewed 55 times

Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,950,000. 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: Required investment Estimated life Estimated residual value Estimated annual cash inflows over the next 10 years Required rate of return Indiana proposal $1,950,000 5 years $20,000 $800,000 5% Kentucky proposal $2,000,000 5 years $90,000 $900,000 5% 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%.) O A. 21.23% B. 41.03% C. 40% O D. 25.9%