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

Multiple Choice

Shrewsbury Incorporated 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%.The residual income for this year's investment opportunity when considered alone is closest to:

A) $124,000
B) $12,000
C) $0
D) $108,800