(Answered) The top hat division ofblandons fine menswear had a

Accounting

The Top Hat Division ofBlandon's Fine Menswear had a prospective investment with the following forecasted results.

Sales	$4,500,000
Operating income	$675,000
Total assets	$3,000,000
Current liabilities	$250,000

Management's target rate of return is12% and TopHat's ROI without the above investment is48%.If management evaluates the divisions based on residual income what is the residual income of the project and Top Hat Division managementwould/would not invest in theproject?

A. $(345,000),

B. $345,000,

C. $(315,000),

D. $315,000,

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