Question 4 of 11

Question 4 ot 1 View Policies Current Attempt in Progress Paula Boothe, president of the Culver Corporation, has mandated minimum 8% return on investment for any project undertaken by the company Given the campanVs decentralization. Paula I eaves investment decisions to the divisional managers as longas they anticipate minimum rate of return of at least 10%. The Energy Drinks division, under the direction of manager Martin Koch. has achieved return on investment for the past three years. This year is not expected to be different from the three. Koch has just received proposal to invest Sl.843000 in new line of energy drinks that is expected to generate $328,000 in operating income. Assume that Culver Corporation's actual weighted-average cost of capital is and its tax rate is 32K Calculate the economic value added of the proposed new ine of energy d rinks (Iftheeconornic value ad&d is ngative then with a r.tive sign preceding e.g. -5, 125 mr7ttEis, e.g. (5, 125). Ramd answer to O decimal e.g. 5, 125.) Economic value added S eTextbook and Media S;ve for Leter Assistance Used Attempts: O of 3 used