NOPAT is Rs 500,000, capital is Rs 3,000,000, cost of capital 10%. What is EVA?
ARs 200,000
BRs 150,000
CRs 100,000
DRs 300,000
Answer & Solution
Correct answer: A. Rs 200,000
Capital charge is 10% of 3,000,000 = 300,000, so EVA = 500,000 - 300,000 = 200,000.
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