A Firm Has an Average Investment of $10,000 During the Year

question 51

Multiple Choice

A firm has an average investment of $10,000 during the year. During the same period, the firm generates after-tax income of $1,000.
Calculate the economic value added (EVA) for the firm. (The cost of capital is 15 percent.)

• A)−$500
• B)$1,500
• C)$1,200
• D)$1,000

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Definitions:

Delta Waves

Low frequency brain waves that indicate deep sleep or meditation.

Alpha Waves

Brainwave patterns associated with a state of wakeful relaxation.

Sleep Spindles

Bursts of oscillatory brain activity visible on an EEG that occur during stage 2 of non-REM sleep, often associated with learning, memory, and the brain's ability to reorganize itself.

Sleep Patterns

The habitual resting and waking rhythm that determines when one sleeps and the quality and duration of sleep.