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The Country Garden Company's current net operating income is $18,745 and its average operating assets are $81,500. The Country Garden's required rate of return is

The Country Garden Company's current net operating income is $18,745 and its average operating assets are $81,500. The Country Garden's required rate of return is 20%. A new project being considered would require an investment of $13,500 and would generate annual net operating income of $2,970. What is the residual income of the new project?

$270.

$594.

$(135).

$1,049.

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