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vikingblood vikingblood
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A month ago
The division director for Natchez Corporation's Mississippi division, which operates as an investment center, is considering investing in machinery which costs of $2,200,000 and is expected to generate $332,000 in additional operating income. If the division's weighted average cost of capital is 11% and its tax rate is 20%, what is the equipment's EVA?

▸ $332,000

▸ $23,600

▸ $242,000

▸ $90,000
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Managerial Accounting

Managerial Accounting


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hhortonhhorton
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A month ago
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$23,600

($332,000 × 80%) - ($2,200,000 × 11%) = $265,600 - $242,000 = $23,600
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vikingblood Author
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A month ago
Thanks
Butwhy
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Yesterday
Thank you, thank you, thank you!
homework1
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2 hours ago
this is exactly what I needed
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