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)

Question

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)

Quizplus · Accepted Answer

The Answer of 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)