Multiple Choice
People's Construction Company has set a 15% required minimum rate of return.The company's CFO is considering investing in a $125,000 crane that is expected to generate $25,000 in additional operating income.What is the crane's residual income?
A) $4,500
B) $6,250
C) $15,000
D) $18,750
Correct Answer:
Verified
Correct Answer:
Verified
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