A small company in Vancouver sold $788,000 worth of its products last year. Net income rep-resents 24%
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A small company in Vancouver sold $788,000 worth of its products last year. Net income rep-resents 24% of sales. Net operating profit after tax (NOPAT) and total capital are, respectively, $240,000 and $520,000. The weighted average cost of capital and the required cost of capital were, respectively, 15% and 12%. What is EVA?
a. $111,120
b. $126,720
c. $162,000
d. $177,600
Cost Of CapitalCost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Related Book For 
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
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