alleryStart learning →After a 14% charge on Rs 400 lakh capital, NOPAT of Rs 48 lakh leaves what EVA?
APlus Rs 8 lakh
BMinus Rs 8 lakh
CPlus Rs 104 lakh
DPlus Rs 56 lakh
Answer & Solution
Correct answer: B. Minus Rs 8 lakh
Capital charge is 14% of 400 = 56 lakh, so EVA = 48 - 56 = minus 8 lakh, meaning value is destroyed.
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