Doral Division of Resorts International Reported Net Operating Profit After

Multiple Choice

Doral Division of Resorts International reported net operating profit after taxes totaling $120,000 in 2017.The cost of capital is 10.5 percent and the invested capital is $560,000.R&D incurred in 2017 was $100,000.The company's policy is to amortize intangible assets over 4 years.The income tax rate is 30 percent.How much is the company's economic value added for 2017?

A) $105,825
B) $825
C) $70,825
D) $75,825