Estimate a Firm's Economic Value Added EVA) Based On: NOPAT

question 7

Multiple Choice

Estimate a firm's economic value added EVA) based on: NOPAT = $400,000; amount of financial capital used = $1,600,000; and WACC = 19%.

• A) $26,000
• B) $36,000
• C) $96,000
• D) $54,000
• E) $64,000

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Definitions:

R&D Groups

Teams or units within an organization dedicated to research and development activities aimed at creating new products, processes, or knowledge.

Communicate

The process of sharing information, ideas, and feelings between individuals or groups through speaking, writing, or other mediums.

Managerial Innovation

The introduction of new management practices, processes, or structures that aim to improve organizational effectiveness.

Organizational Change

The method by which a business or institution modifies its framework, tactics, practices, technologies, or corporate culture.