Thunder Sports Enterprises
the Basketball Division of Thunder Sports Enterprises

Multiple Choice

Thunder Sports Enterprises
The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year:
$\begin{array}{ll}\text { Assets available for use } & \$ 1,200,000 \text { Book Value } \\& \$ 1,500,000 \text { Market } V \text { alu } \\\text { Residual income } & \$ 108,000\\\text { Return on innvestment } & 14\%\end{array}$
Refer to Thunder Sports Enterprises.If the manager of the Basketball Division is evaluated based on return on investment,how much would she be willing to pay for an investment that promises to increase net segment income by $60,000?

A) $ 108,000
B) $ 300,000
C) $ 428,572
D) $1,200,000