The Produce Division of Saveway Shop Had Invested Capital of $520,000

Multiple Choice

The Produce Division of Saveway Shop had invested capital of $520,000 last year with $20,000 of noninterest-bearing current liabilities.If the minimum required rate of return is 9 percent, the cost of capital is 7 percent, and last year's residual income was $52,000, how much was last year's NOPAT?

A) $98,800
B) $15,600
C) $88,400
D) $5,200