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Pilot Corporation has established separate business units as investment centres and the managers performance is measured using financial measures. Bonuses of up to one third

  1. Pilot Corporation has established separate business units as investment centres and the managers performance is measured using financial measures. Bonuses of up to one third of the managers salaries are paid for achieving the targets as described below. The following is known about the Alpha Divisions results: (4 marks)

Profit: $8 000 000

Sales revenue: $100 000 000

Invested Capital $45 000 000

Tax rate: 30%

WACC 15%

Required: calculate the EVA

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