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Sandhill Industries is considering the purchase of equipment costing $90000. The company has a 12% required minimum rate of return. The equipment is expected to
Sandhill Industries is considering the purchase of equipment costing $90000. The company has a 12% required minimum rate of return. The equipment is expected to generate $28000 in additional operating income. Sandhills tax rate is 25% and its weighted-average cost of capital is 12%. What is the equipments EVA??
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