Shrewsbury Inc

Multiple Choice

Shrewsbury Inc. reported the following results from last year's operations: At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
The company's minimum required rate of return is 14%.
If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:

A) $23,200
B) ($44,000)
C) $628,000
D) $652,800