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Oriole Industries is considering the purchase of equipment costing $85000. The company has a 12% required minimum rate of return. The equipment is expected to
Oriole Industries is considering the purchase of equipment costing $85000. The company has a 12% required minimum rate of return. The equipment is expected to generate $23000 in additional operating income. Oriole's tax rate is 25% and its weighted average cost of capital is 12%. What is the equipment's EVA? O $10200 O $2760 O $7440 O $7050
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