One division of the Marvin Educational Enterprises has depreciable assets costing $4,040,000. The cash flows from these assets for the past three years have been Year Cash fows $1260,000 2 $1416,000 $1,624,000 3 The current (e, replacement) costs of these assets were expected to increase 20 % each year. Marvin used the straight-line depreciation method; the estimated useful life is 10- years with no salvage value. For return on investment (RO) calculations, Marvin uses end-of year balances Whet is the residual income for each year, assuming the cost of capital is 15% and Marvin uses historical costs and gross book values to compute residual income? Year 1 $250,000 $202.000 $252.000 $252,000 Year 2 $406,000 $202.000 $283,200 $406,000 Wear 3 $ 614,000 $202,000 $324,800 $243,600 A B C. O Option A O Option B O Option C O Option D