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Your companys Human Resources Division has $1,000,000 in total assets, which is the total capital employed by this division. The Weighted Average Cost of Capital
Your companys Human Resources Division has $1,000,000 in total assets, which is the total capital employed by this division. The Weighted Average Cost of Capital (WACC) is 8%. The tax rate is 20%, and the Earnings Before Interest and Tax (EBIT) of Human Resources is $800,000.
What is the Economic Value Added (EVA) for the Human Resources Division?
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