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CTP · Question #813

CTP Question #813: Real Exam Question with Answer & Explanation

The correct answer is B. €1,064,000.. See the full explanation below for the reasoning.

Question

  • (Topic 9) James Corp has a 7.98% WACC and an assumed tax rate of 30%. James Corp employed €70,000,000 of capital (long-term debt and equity) in a project that generated an operating profit of €9,500,000, after depreciation expense of €300,000. EVA in this case would be:

Options

  • A€764,000.
  • B€1,064,000.
  • C€1,087,940.
  • D€1,274,000.

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