What is massa eva

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Reference no: EM133000884

Massa has $29 million in total invested operating capital , and WACC is 10%. Massa has the following income statement :

Sales: $10.0 million
Operating costs: 6.0 million
Operating income (EBIT): $ 4.0 million
Interest expense: $ 2.0 million
Earnings before taxes (EBT ): $ 2.0 million
Taxes (40 %): 0.8 million
Net income: $ 1.2 million

Problem 1: What is Massa's EVA?

A. $600.000
B. $-400.000
C. $-500,000
D. $ 500,000

Reference no: EM133000884

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