People's Contrution Company has set a 15% required minimum rate of return m. The company's...

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Accounting

People's Contrution Company has set a 15% required minimum rate of return m. The company's CFO is considering investing in a $125,000 crane that is expectedto generate $25,000 in additional operating income. What is the crane's residual income?
A. $4,5000
B. $6,250
C. $15,000
D. $18,750
The answer IS NOT D.

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