Doral Division of Resorts International Reported Net Operating Profit After

question 85

Multiple Choice

Doral Division of Resorts International reported net operating profit after taxes totaling $120,000 in 2014. The cost of capital is 10.5 percent and the invested capital is $560,000. R&D incurred in 2014 was $100,000. The company's policy is to amortize intangible assets over 4 years. The income tax rate is 30 percent. How much is the company's economic value added for 2014?

• A) $105,825
• B) $825
• C) $70,825
• D) $75,825

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Definitions:

Bourgeois Class

The social class that came to own the means of production during modern industrialization, typically referring to the middle and upper classes in capitalist societies.

Capitalist Society

A capitalist society is one in which the means of production and distribution are privately owned and operated for profit, often characterized by competitive markets, capital accumulation, and wage labor.

Terminology

The set of specialized words and expressions used in a particular profession, topic, or area of study.

Development

A process of improvement in the quality of life of a population, including economic growth, social equity, and environmental sustainability.