Compute what is the economic value added

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Problem 1: Tentafield Ltd has an after tax operating income of $2.6 million, assets totalling $8 million and current liabilities totalling $400 000. The weighted average cost of capital is 10 per cent. What is the economic value added?

Select one:

a. $1 840 000
b. $1 400 000
c. None of the given answers
d. $1 800 000

Reference no: EM132706493

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