A divisional manager at Dean Co. is considering implementing a new project in the coming year that would have a cost of $889846 and would add $107675 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	$685080
	Assets	1873914

Assuming corporate has a minimum required ROI of 11%, what would be the increase (decrease) in residual income if the manager accepts the project?

Select one:

a. $107675

b. $488741

c. $-9792

d. $9792