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 with the additional project?

A) $40,000
B) $6,000
C) $13,750
D) $4,200
E) $25,600