Fairpoint Products Provided the Following Selected Information About Its Consumer

Multiple Choice

Fairpoint Products provided the following selected information about its consumer products division for the current year: $\begin{array}{|l|rr|}\hline \text { Desired ROI } & & 8 \% \\\hline \text { Net Income } & \$ & 100,000 \\\hline \text { Residual Income } & \$ & 60,000 \\\hline\end{array}$ Based on this information,the division's investment amount was:

A) $500,000.
B) $1,250,000.
C) $750,000.
D) $2,000,000.