Figure 6 The Following Results for the Year Pertain to the Maddox

Multiple Choice

Figure 6
The following results for the year pertain to the Maddox Division of Ryan Ltd.:
The weighted average cost of capital is 12 percent. The firm's minimum required rate of return is 14 percent. Taxes for the firm are 40 percent.
-Refer to Figure 6 above. 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