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Barbara Company paid $8 million cash for research and development. EVA invested capital was computed as $20 million. Barbara Company's cost of capital was 20%.
Barbara Company paid $8 million cash for research and development. EVA invested capital was computed as $20 million. Barbara Company's cost of capital was 20%. To add economic value to the firm, Barbara Company must generate revenues less operating costs of at least _____.
a) $4 million
b) $10 million
c) $6 million
d) $12 million
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