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Consider this case: Last year, Jackson Tires reported net sales of $60,000,000 and total operating costs (including depreciation) of $39,000,000. Jackson Tires has $63,500,000 of

Consider this case: Last year, Jackson Tires reported net sales of $60,000,000 and total operating costs (including depreciation) of $39,000,000. Jackson Tires has $63,500,000 of investor-supplied capital, which has an after-tax cost of 12.5%. If Jackson Tiress tax rate is 40%, how much value did its management create or lose for the firm during the year (rounded to the nearest whole dollar)?

$28,062,500

$4,662,500

$30,162,500

$1,282,188

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