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Division A is an investment centre with assets of $7.

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Division A is an investment centre with assets of $7.3 million. The following is an extract from the annual budget for division A:

The cost of capital is 14%.

Calculate the residual income for division A.

A.

$808,000

B.

$1,727,800

C.

$358,000

D.

$2,008,000

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TESTED 02 Aug 2025