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What is this firm’s residual income?

What is this firm’s residual income?

Revenues: $110,000

Expenses (including COGS and all taxes): $87,000

Internal rate of return: 8.5%

Capital Investment: $55,000

ROI: 8.0%

Cost of capital: 11%

A.

$16,500

B.

$16,950

C.

$18,325

D.

$18,600

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