Jericho Paper Distributors Has a Stable Share of a Saturated

Multiple Choice

Jericho Paper Distributors has a stable share of a saturated regional market. If the company's EVA is expected to continue at $7.2 million indefinitely, its capital invested is $3.1 million, and its cost of capital is 8%, what is the total business value?

A) $144.2 million
B) $93.1 million
C) $41.5 million
D) $10.3 million
E) $9.8 million