The Country Garden Company's Current Net Operating Income Is $16,800

Multiple Choice

The Country Garden Company's current net operating income is $16,800 and its average operating assets are $80,000. The Country Garden's required rate of return is 18%. A new project being considered would require an investment of $15,000 and would generate annual net operating income of $3,000. What is the residual income of the new project?

A) 20.8%.
B) 20%.
C) $(150) .
D) $300.