Question
Consider a firm which ended the year 2016 with $400,000 in invested capital. The firm announces that it intends to produce an EVA of $5,000
Consider a firm which ended the year 2016 with $400,000 in invested capital. The firm announces that it intends to produce an EVA of $5,000 next year (in 2017). The firm's weighted average cost of capital is 9%. What amount of NOPAT must the firm earn in 2017 to achieve that EVA?
| $36,000 |
| $41,000 |
| $10,000 |
| $31,000 |
| $5,000 |
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
