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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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