Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,910,000 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 Indiana proposal $1,910,000 7 years $60,000 $500,000 7% 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 OA. 31.83 years OB. 267 years OC. 3.82 years OD. 4.34 years **** Kentucky proposal $2,400,000 7 years $90,000 $900,000 7%

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