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Your firm is evaluating a project. The project requires an investment amount is $500,000 and your firms weighted average cost of capital is 15%. Given
Your firm is evaluating a project. The project requires an investment amount is $500,000 and your firms weighted average cost of capital is 15%. Given the project is expected to generate a net operating profit after tax (NOPAT) of $100,000. Calculate the economic value added (EVA) of the project. Should your firm accept or reject the project? Explain your reason(s). show all your works below.
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