Multiple Choice
A firm has an average investment of $10,000 during the year. During the same period, the firm generates after-tax income of $1,000.
Calculate the economic value added (EVA) for the firm. (The cost of capital is 15 percent.)
A) −$500
B) $1,500
C) $1,200
D) $1,000
Correct Answer:
Verified
Correct Answer:
Verified
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