Robichau Inc

question 103

Multiple Choice

Robichau Inc. reported the following results from last year's operations: At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics:
The company's minimum required rate of return is 20%.
The residual income for this year's investment opportunity when considered alone is closest to:

• A) $0
• B) $179,100
• C) $153,000
• D) ($27,000)

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