1. What is theEconomic Value Added of Karen Equities Corporation to Birthday Yorn, Inc.?

The following year-end data pertains to the investment centres of Birthday Yorn Inc.: Lyca Credit Corporation Earnings before interest and taxes Php 800,000 Current assets 800,000 Non-currents assets 3,200,000 Current liabilities 400,000 Non-current liabilities 1,000,000 Income tax rate 30% Weighted average cost of capital 10%% Karen Equities Corporation After tax operating profit Php 1,100,000 Total investment value 6,000,000 Income tax rate 30% Weighted average cost of capital 15%