Beery Incorporated Reported the Following Results from Last Year's Operations

Multiple Choice

Beery Incorporated reported the following results from last year's operations: At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics:
The company's minimum required rate of return is 12%. If the company pursues the investment opportunity, this year's combined residual income for the entire company will be closest to:

A) $848,700
B) $942,000
C) $24,300
D) $114,000