What is the amount of the invested capital

Reference no: EM13132684

In 2008, Wishbone Corporation had an operating profit of $750,000 and a residual income of $300,000. If Wishbone's cost of capital is 15%, what is the amount of the invested capital? (Ignore taxes)

a. $5,000,000
b. $3,000,000
c. $2,000,000
d. $1,250,000

Reference no: EM13132684

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