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the following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125 current

the following data are available for a foundry operation started as a new company four years ago when the construction cost index was 125

current liabilities $170000

operating income $176200

NBV long term assets (end year 3) $687500

current assets $300000

GROSS BOOK VALUE $1100000

estimated total useful life 8 years

Age of assets 4 years

construction cost index end of year 4 150

of long term assets at historical cost

what is the current cost annual depreciation in year 4 dollars?

1-$440000

2-$240000

3-$165000

4-$295000

5-$200000

question 5

Waldorf Company has two sources of funds: long-term debt with a market and book value of $9 million issued at an interest rate of 10%, and equity capital that has a market value of $6 million (book value of $2 million). The cost of equity capital is 5%, while the tax rate is 30%.What is the EVA for St. johns?

operating Income before tax assets current liabilities

ottawa $480000 $2000000 $100000

st johns $600000 $4000000 $300000

regina $1020000 $6000000 $600000

what is EVA for ST. Johns ?

1-$190600

2-$145000

3-$310600

4-$142200

5-$200000

please provide answer for the 2 question with calculations

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