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Earnest K, the owner of Ron Jon Sur Shop, is approached to build tiki bar and nightclub next door that would cost $1,200,000. It is

Earnest K, the owner of Ron Jon Sur Shop, is approached to build tiki bar and nightclub next door that would cost $1,200,000. It is anticipated to produce $400,000 in operating income.

Assume a weighted average cost of capital of 8% and a tax rate of 20%. What s the EVA?

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