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Sanchez Company reports the followinginformation: Net operating profit after taxes $500,000 Adjusted net operating profit after taxes $670,000 Average invested capital $500,000 Adjusted average invested

Sanchez Company reports the followinginformation:

Net operating profit after taxes $500,000

Adjusted net operating profit after taxes $670,000

Average invested capital $500,000

Adjusted average invested capital $700,000

Aftertax cost of capital 10%

The adjusted figures reflect adjustments used by Stern Stewart& Company. What is the EVA for SanchezCompany?

A.

$450,000

B.

$600,000

C.

$620,000

D.

$430,000

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