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What is the net return on investment

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Reference no: EM132953408

A firm has a total asset of $1,000 during the year. During the same time, the firm has a net income (after-tax earnings) of $80.

a) If the cost of capital is 10%, what is the net return on investment?

b) If the cost of capital is 10%, calculate the economic value added (EVA) for the firm.

Reference no: EM132953408

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