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Yellow Corp is planning to expand and new projects is expecting to earn an average of P150,000 monthly. The project requires 7,000,000 investment at 12%
Yellow Corp is planning to expand and new projects is expecting to earn an average of P150,000 monthly. The project requires 7,000,000 investment at 12% of cost of capital. Based on EVA, should the company pursue this project ? 3 points A No, the cost of capital is P840,000 B Yes, the EVA is P1,800,000 C Yes, the EVA is P960,000 D No, the future earnings is only P1,800,000
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Financial and Managerial Accounting
Authors: John J Wild, Ken W. Shaw
8th edition
1260247856, 978-1260247855
