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

question 29

Multiple Choice

A firm has an average investment of $10,000 during the year.During the same time,the firm generates after-tax income of $2,000.
Calculate the economic value added (EVA) for the firm.(The cost of capital is 15%.)

• A)$500
• B)$1,500
• C)$2,000
• D)$1,000

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Definitions:

Revokes Acceptance

The legal act of canceling or withdrawing approval of a previously accepted offer or contract, often due to the discovery of a significant flaw or misrepresentation.

Consumers Choice

The decision-making process by which customers select from available products or services based on preferences and factors like price and quality.

Digital Devices

Electronic tools or systems that generate, store, or process data, typically in binary form.

Nonconformity

A deviation or failure to meet specified standards or requirements, often related to quality control in manufacturing or service delivery.