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Blue Spruce Corp. is a merchandising firm. Last year the company reported sales of $676100 and cost of goods sold of $405500. The company's total
Blue Spruce Corp. is a merchandising firm. Last year the company reported sales of $676100 and cost of goods sold of $405500. The company's total variable selling and administrative expense was $60770, and fixed selling and administrative expense was $54300. The total fixed costs for the firm are $405500. O $459800. $54300. O $60770. Sandhill Industries is considering the purchase of equipment costing $101000. The company has a 12% required minimum rate of return. The equipment is expected to generate $38000 in additional operating income. Sandhill's tax rate is 25% and its weighted- average cost of capital is 12%. What is the equipment's EVA? O $12120 O $16380 $4560 O $7560
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