46 X 00:25:59 One division of the Marvin Educational Enterprises has depreciable assets costing $4,010,000. The cash flows from these assets for the past three years have been: Year Cash flows 123 $1,215,000 $1,404,000 $1,621,000 The current (i.e., replacement) costs of these assets were expected to increase 20% each year. Marvin used the straight-line depreciation method and the estimated useful life is 10-years with no salvage value. For return on investment (ROI) calculations, Marvin uses end-of-year balances. What is the residual income for each year, assuming the cost of capital is 12% and Marvin uses historical costs and gross book values to compute residual income? Year 1 A. $332,800 B. $ 80,200 C. $243,000 D. Year 2 $521,800 Year 3 $738,800 $ 80,200 $ 80,200 $280,800 $324,200 $243,000 $521,800 $194,520