what is the amount of economic value added eva for the division 630873
The following information is available for the wholesale products division of Watco:
|
Net operating profit before interest and taxes |
$30,000,000 |
|
Depreciation expense |
10,000,000 |
|
Change in net working capital |
5,000,000 |
|
Capital expenditures |
4,000,000 |
|
Invested capital (total assets – current liabilities) |
50,000,000 |
|
Weighted average cost of capital |
10% |
|
Tax rate |
40% |
What is the amount of economic value added (EVA) for the division?
- $30,000,000
- $13,000,000
- $25,000,000
- $ 5,000,000