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D. One of MultiRisk Conglomerate's divisions has above average risk and so a divisional weighted average cost of capital of 18%. This division has current

D. One of MultiRisk Conglomerate's divisions has above average risk and so a divisional weighted average cost of capital of 18%. This division has current sales of $775,000, operating income of $295,000, total net operating capital of $350,000, and a marginal tax rate of 21%. What is the Market Value Added (MVA) for this division if the constant growth FCF model applies and the division expects a constant growth in sales and FCFs of 7%?

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