Question
You have been presented with a proposal to invest $400,000 into a company (using $100,000 of borrowed funds). In the first year of operations, the
You have been presented with a proposal to invest $400,000 into a company (using $100,000 of borrowed funds).
In the first year of operations, the net operating profit after tax is expected to be approximately $58,000 in total. No shift in debt or equity is expected over the 3 years. The WACC is calculated at 10%.
Calculate the EVA.
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Value at Risk The New Benchmark for Managing Financial Risk
Authors: Philippe Jorion
3rd edition
0070700427, 71464956, 978-0071464956
