For company Z, the following financial data for this year is available:

 After tax income of $1,500, 

Divisional investment of $9,000, 

R&D expenses of $2,000, 

R&D expenses were considered an accounting distortion and assumed to have a two year life to be amortized 50% this year, and 50% capitalized (adjusted to investment) and will be expensed next year, assume there is no current liability, and no other R&D expenses that took place before this year, using 9% cost of capital.

What is the company EVA for this year?

Answer rating: 100% (QA)

To calculate the Economic Value Added EVA for the company we need to subtra... View the full answer