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Davidson Corporation has a target return of 1 5 % . If a prospective investment has an estimated return on investment of 2 0 %

Davidson Corporation has a target return of 15%. If a prospective investment has an estimated return on investment of 20%, and a residual income of $10,000, what is the estimated cost of the investment?
Select one:
a. $50,000
b. The answer can't be determined from this information.
c. $200,000
d. $66,667

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