In 2020, Evans Corporation Had an Operating Profit of $750,000

question 91

Multiple Choice

In 2020, Evans Corporation had an operating profit of $750,000 and a residual income of $300,000. If Evans' cost of capital is 15%, what is the amount of the invested capital?

• A) $5,000,000.
• B) $3,000,000.
• C) $2,000,000.
• D) $1,250,000.

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Definitions:

Maintenance Cost

Expenses associated with the upkeep and repair of equipment or facilities to ensure they are functional and efficient.

Breakdowns

Unexpected failures or malfunctions of equipment or systems that disrupt operations or processes.

Pickering Nuclear Station

A Canadian nuclear power plant located in Pickering, Ontario, known for generating electricity through nuclear reactions.