Figure 19-3
the Following Results for the Year Pertain to the Maddox

Multiple Choice

Figure 19-3
The following results for the year pertain to the Maddox Division of Ryan Ltd.: $\begin{array}{lr}\text { Sales } & E 640,000 \\\text { Variable expenses } & 160,000 \\\text { Fixed expenses } & 300,000\end{array}$ The weighted average cost of capital is 12 per cent. The firm's minimum required rate of return is 14 per cent. Taxes for the firm are 40 per cent.
-Refer to Figure 19-3. If the total capital employed by the Maddox Division is £800,000, what is the economic value added (EVA) ?

A) £12,000
B) £96,000
C) £108,000
D) £180,000