One division of the Marvin Educational Enterprises has depreciable assets costing S150,000. The cash flows from these assets for the past three years have been 1 Cash now $ 1,425,000 $ 1,450,000 $ 1,635,000 The current (.e., replacement) costs of these assets were expected to increase 25% each year. Marvin used the straight-line depreciation method; 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 14% and Marvin uses historical costs and net book values to compute residual Income? A. B. C. D. Year 1 $ 199,500 $ 487,100 $ 356,250 $ 487100 Year 2 $ 204,400 $ 580,200 $ 365,000 $ 545,200 Year 3 $ 228.900 $ 813,300 $ 408,750 $ 603,300 Option A 0 Option B O Option 0 Option D