Question
The minimum required rate of return is also often referred to as the a. benchmark rate. b. hurdle rate. c. future value rate. d. project
The minimum required rate of return is also often referred to as the
| a. | benchmark rate.
| |
| b. | hurdle rate.
| |
| c. | future value rate.
| |
| d. | project rate.
|
Wamba Industries is considering the purchase of equipment costing $80,000. The company has a 12% required minimum rate of return. The equipment is expected to generate $20,000 in additional operating income. Wambas tax rate is 25% and its weighted-average cost of capital is 12%. What is the equipments EVA?
| a. | $5,400
| |
| b. | $2,400
| |
| c. | $7,200
| |
| d. | $9,600
|
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Managerial Accounting
Authors: McGraw Hill Education
14th Edition
1121182518, 978-1121182516
