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The firms average cost of capital (required rate of return) is 14%. The firm has used 1,000,000 of invested capital (equity and debt) to generate
The firms average cost of capital (required rate of return) is 14%. The firm has used 1,000,000 of invested capital (equity and debt) to generate an operating profit before interest and after-tax of 165,000 during the past year. Find the firms economic profit.
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