The Manager of Synergy Company's Stock Division Projects the Following

Multiple Choice

The manager of Synergy Company's Stock Division projects the following for next year:

The manager can invest in an additional project that would require $50,000 investment in additional assets and would generate $9,000 of additional income.
-The company's minimum rate of return is 15%.What is the residual income for the Stock Division without the additional investment?

A) $13,450
B) $6,000
C) $16,600
D) $18,000
E) $12,250