Assume that buying the brewery will cost $1.1 million in upfront investment and net income after taxes will be $50k per year. The hurdle rate is based on the balance you are currently earning on your investment account, 10%. The brewery will also depreciate at $100,000/year over this period. 

What is the EVA of the first five years of the buy option?

Answer rating: 100% (QA)

EVA NOPAT net operating profit after taxes Capital Cost of ... View the full answer