Question: The Central division of Pieces and Clothing, Inc., is considering an investment which has the following projected information: Revenues = $100,000 All expenses = $85,000 Investment value = $140,000 Upper management of Pieces and Clothing, Inc., has established the cost of capital at 10%. If the manager is compensated based on residual income, will she make the investment? 1 point No, because the cost of capital is positive. No, because the residual income percentage is less than the cost of capital percentage. Yes, because the residual income from this investment is $1,000. Yes, because the residual income is $15,000.