Where should be placed htaccess file in Prestashop 1.4x? - apache

Question

my Prestashop 1.4x installed in a subdirectory, eg: http://mydomain.com/prestashop/
on Apache server.
There is option to generate Htaccess file from admins, which are copied into the /prestashop/ directory. Is it correct location or I should put htaccess into parent(root) directory?
example:
# .htaccess automaticaly generated by PrestaShop e-commerce open-source solution
# WARNING: PLEASE DO NOT MODIFY THIS FILE MANUALLY. IF NECESSARY, ADD YOUR SPECIFIC CONFIGURATION WITH THE HTACCESS GENERATOR IN BACK OFFICE
# http://www.prestashop.com - http://www.prestashop.com/forums
<IfModule mod_rewrite.c>
# URL rewriting module activation
RewriteEngine on
# URL rewriting rules
RewriteRule ^([a-z]{2})/([0-9]+)\-[a-zA-Z0-9-]*\.html /store/product.php?id_product=$2&isolang=$1 [QSA,L]
... ... ...
... ... ...
RewriteRule ^en/best-sales$ /store/best-sales.php?isolang=en [QSA,L]
RewriteRule ^en/page-not-found$ /store/404.php?isolang=en [QSA,L]
</IfModule>
# Catch 404 errors
ErrorDocument 404 /store/404.php
<IfModule mod_expires.c>
ExpiresActive On
ExpiresByType image/gif "access plus 1 month"
ExpiresByType image/jpeg "access plus 1 month"
ExpiresByType image/png "access plus 1 month"
ExpiresByType text/css "access plus 1 week"
ExpiresByType text/javascript "access plus 1 week"
ExpiresByType application/javascript "access plus 1 week"
ExpiresByType application/x-javascript "access plus 1 week"
ExpiresByType image/x-icon "access plus 1 year"
</IfModule>
FileETag INode MTime Size
<IfModule mod_deflate.c>
<IfModule mod_filter.c>
AddOutputFilterByType DEFLATE text/html text/css text/plain text/javascript application/javascript application/x-javascript
</IfModule>
</IfModule>

Answer 1

It is correct location for http://mydomain.com/store/