You have been presented with a proposal to invest $200000 into a company (using $100000 of borrowed

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You have been presented with a proposal to invest $200000 into a company (using $100000 of borrowed funds). In the first year of operations, the net operating profit after tax is expected to be approximately $46000 in total. No shift in debt or equity is expected over the three years. The WACC is calculated at 13 per cent.
Calculate the EVA.

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Accounting Business Reporting For Decision Making

ISBN: 9780730369325

7th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond

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