O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,850,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,600,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,850,000 $2,600,000 Estimated life 10 years 10 years Estimated residual life $60,000 $50,000 Estimated annual cash inflows- over the next 10 years $800,000 $800,000 Required rate of return 10% 10% The net present value of the Kentucky proposal is closest to .