Shrewsbury Inc. reported the following results from last year's operations:
At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
The company's minimum required rate of return is 14%.
-The residual income for this year's investment opportunity when considered alone is closest to:
A) $124,000
B) $12,000
C) $0
D) $108,800

Question

Shrewsbury Inc. reported the following results from last year's operations:
  At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
  The company's minimum required rate of return is 14%.
-The residual income for this year's investment opportunity when considered alone is closest to:
A) $124,000 
B) $12,000 
C) $0 
D) $108,800

Quizplus · Accepted Answer

11ea7761_1673_00e4_81a5_f5178b6dd37b_TB2580_00 11ea7761_1673_27f5_81a5_0fd149399d06_TB2580_00