A divisional manager at Dean Co. is considering implementing a new project in the coming year that would have a cost of $893181 and would add $115045 to the divisions net income each year.

The managers projected results for the coming year, before consideration of the project proposal, are as follows:

	Income	$697387
	Assets	1894130

Assuming corporate has a minimum required ROI of 9%, what would be the increase (decrease) in residual income if the manager accepts the project?

Select one:

a. $561574

b. $-34659

c. $115045

d. $34659