The Following Information Pertains to Arnez Company Invested Capital Is Defined as Total Assets Minus Current Liabilities

Multiple Choice

The following information pertains to Arnez Company:
$\begin{array}{ll}\text { Total assets } & \$ 150,000 \\\text { Net operating profit after taxes } & \$ 12,000 \\\text { Total current liabilities } & \$ 110,000 \\\text { Total expenses } & \$ 160,000 \\\text { Total liabilities } & \$ 115,000 \\\text { Total revenues } & \$ 180,000\end{array}$
Invested capital is defined as total assets minus current liabilities.The after-tax cost of capital is 10%.What is the economic profit?

A) $8,000
B) $20,000
C) $40,000
D) $50,000