Question 9 of 12 -15 1 Paula Boothe, president of the Bridgeport Corporation, has mandated a...

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Question 9 of 12 -15 1 Paula Boothe, president of the Bridgeport Corporation, has mandated a minimum 10% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 12% The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 13% return on investment for the past three years. This year is not expected to be different from the past three Koch has just received a proposal to invest $1,835,000 in a new line of energy drinks that is expected to generate $313,000 in operating income. Assume that Bridgeport Corporation's actual weighted-average cost of capital is 10% and its tax rate is 30% (a) Calculate the economic value added of the proposed new line of energy drinks. Of the economic value added is negative then enter with a negative sign preceding the number, eg.-5,125 or parenthesis, eg (5.125). Round answer to O decimal places, eg 5,125) Economic value added eTextbook and Media Save for Later Attempts: 0 of 3 used Suit A Question 9 of 12 -15 1 Paula Boothe, president of the Bridgeport Corporation, has mandated a minimum 10% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 12% The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 13% return on investment for the past three years. This year is not expected to be different from the past three Koch has just received a proposal to invest $1,835,000 in a new line of energy drinks that is expected to generate $313,000 in operating income. Assume that Bridgeport Corporation's actual weighted-average cost of capital is 10% and its tax rate is 30% (a) Calculate the economic value added of the proposed new line of energy drinks. Of the economic value added is negative then enter with a negative sign preceding the number, eg.-5,125 or parenthesis, eg (5.125). Round answer to O decimal places, eg 5,125) Economic value added eTextbook and Media Save for Later Attempts: 0 of 3 used Suit A