A firm is considering of an investment of $1 million, with a WACC of 10% in a project. Given the project is able to generate net operating profit after tax of $200,000. Calculate the Economic Value Added of the investment.   Question 6 options:   1)  - $100,000   2)  $100,000   3)  $200,000   4)  None of the above

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A firm is considering of an investment of $1 million, with a WACC of 10% in a project. Given the project is able to generate net operating profit after tax of $200,000. Calculate the Economic Value Added of the investment.
 

Question 6 options:

 

1) 

- $100,000
 

2) 

$100,000
 

3) 

$200,000
 

4) 

None of the above
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