A. 4.04 years B. 3.88 years C. 97 years D. 2.56 years

Beck Department Stores is considering two possible expansion plans One proposal involves opening 5 stores in Indiana at the cost of Sl Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of S27300i000. The following information is available Required investment Estimated life Estimated residual value Estimated annual cash inflows over the next 9 years Required rate of return The payback period for the Indiana proposal is closest to Indiana proposal Sli940,ooo 5 years $20,000 $500,000 12% Kentucky proposal 5 years sgo,ooo sgoo,ooo 12% O 0 O B. C. D. 3.88 years 97 years 2.56 years