Question on ROI DATA Revenue Unearned Revenue BI Purchases Core Current Assets Land for speculation PPE Operating assets for previous year Operating expenses Accrued expense TAX RATE DEBT USED INTEREST EXPENSES DEBT REAL RATE INFLATION RISK PREMIUM RISK FREE RATE Training cost R & D expenses REQUIRED 1. FIND WACC 2. CALCULATE THE EBIT AFTER TAX 3. CALCULATE COST OF EQUITY 4. CALCULATE RESIDUAL INCOME 5. CALCULATE EVA [ economic value added] $ 97,000 4000 5000 2500 38000 58,000 75000 260,000 185,000 24000 8000 25% 35% 14000 86000 4% 6% 3.5% 10% $34,000 $50,000