H A B c D E F G A merchandising company is considering a $600,000 upgrade to its retail and warehousing facilities that will allow the company to handle more products and 3 attract more customers. The company anticipates that sales will increase by 4 $300,000 and operating income will increase by $120,000 per year. If the 5 company has a minimum required return on investment of 7.0%, what would be 6 the residual income resulting from the upgrade? 7 8 9 10 11 12 Answer: 13 14 15