The Top Hat Division ofBlandon's Fine Menswear had a prospective investment with the following forecasted results.
| Sales |
$4,500,000 |
| Operating income |
$675,000 |
| Total assets |
$3,000,000 |
| Current liabilities |
$250,000 |
Management's target rate of return is12% and TopHat's ROI without the above investment is48%.If management evaluates the divisions based on residual income what is the residual income of the project and Top Hat Division managementwould/would not invest in theproject?
A. $(345,000),
B. $345,000,
C. $(315,000),
D. $315,000,