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Newport Division of the Mexico Company has the following statistics for its most recent operations: Assets available for use (market value) P3,600,000 P2,000,000 Assets

Newport Division of the Mexico Company has the following statistics for its most recent operations: Assets available for use (market value) P3,600,000 P2,000,000 Assets available for use (book value) Newport Division's return on investment 25% Newport division's residual income P200,000 Compute EVA assuming the cost of capital is 10% and the tax rates 40%.

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