Fairpoint Products Provided the Following Selected Information About Its Consumer

Fairpoint Products provided the following selected information about its consumer products division for the current year: Based on this information, the division's investment amount was:
$$\begin{array} { | l | l r | } \hline \text { Desired ROI } & & 8 \% \\\hline \text { Net Income } & \$ & 100,000 \\\hline \text { Residual Income } & \$ & 60,000 \\\hline\end{array}$$

A) $500,000.
B) $1,250,000.
C) $750,000.
D) $2,000,000.

Correct Answer:

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