Winton Company Has Three Divisions

Multiple Choice

Winton Company has three divisions.The Florida Division has a 30 percent tax rate, a 4.5 percent cost of capital, and a 7.5 percent required rate of return.During the fiscal year, the division reported sales of $3,920,000.Interest expense was $120,000 and net income was $122,800.The Florida Division has total assets of $2,950,000 and noninterest-bearing liabilities of $150,000.How much is the Florida Division's invested capital?

A) $2,800,000
B) $3,100,000
C) $2,950,000
D) None of these answer choices are correct.