Estimate a Firm's Economic Value Added (EVA) Based on the Following

question 78

Multiple Choice

Estimate a firm's economic value added (EVA) based on the following information: 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

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Definitions:

Determinants

Determinants are factors or elements that cause something to happen or significantly influence the outcome of a process or situation.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace.

Willpower

The ability to control impulses and make decisions that align with long-term goals, resisting short-term temptations.

Neoclassical Economics

An economic approach that focuses on the determination of goods, outputs, and income distributions through supply and demand factors.