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Barbara Company paid $8 million cash for research anddevelopment. EVA invested capital was computed as $20 million.Barbara Company's cost of capital was 20%. To add

Barbara Company paid $8 million cash for research anddevelopment. EVA invested capital was computed as $20 million.Barbara Company's cost of capital was 20%. To add economic value tothe firm, Barbara Company must generate revenues less operatingcosts of at least _____.

a) $4 million

b) $10 million

c) $6 million

d) $12 million

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