A firm has net income equal to $2,250,000. It's current capital structure is 60% equity and 40% debt. A new investment costs $1,000,000 and has a NPV of $62,500. If the firm has uses a residual dividend policy then the amount of dividends paid is_________.

a. 1,850,000

b. 1,650,000

c. 1,250,000

d. 2,250,000

e. 0