What is the company’s economic value added (EVA) for the year?

Posted by: Pdfprep Category: MA Tags: , ,

At 30 April 2009, the book value of the net assets of Emor was $12.5 million, and the economic value was $17.825 million.

The net operating profit after tax for the year was $3,428,554. The budgeted return on investment for the year was 16.5%, and the cost of capital is estimated to be 12%.

What is the company’s economic value added (EVA) for the year?
A . $487,429
B . $1,289,554
C . $1,366,054
D . $1,928,554

Answer: B

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