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7. EAO Company had sales of $400,000, variable costs of $200,000, and direct fixed costs totaling $100,000. The company's operating assets total $800,000, tax rate

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7. EAO Company had sales of $400,000, variable costs of $200,000, and direct fixed costs totaling $100,000. The company's operating assets total $800,000, tax rate is 25%, and its weighted average cost of capital is 10%. The economic value added (EVA) for the company is: a. $75,000 b. $5,000 c. $(5,000) d. $320,000

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