The division director for Natchez Corporation's Mississippi division,which operates as an investment center,is considering investing in machinery which costs of $2,200,000 and is expected to generate $332,000 in additional operating income.If the division's weighted average cost of capital is 11% and its tax rate is 20%,what is the equipment's EVA?
A) $23,600
B) $90,000
C) $242,000
D) $332,000

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The Answer of The division director for Natchez Corporation's Mississippi division,which operates as an investment center,is considering investing in machinery which costs of $2,200,000 and is expected to generate $332,000 in additional operating income.If the division's weighted average cost of capital is 11% and its tax rate is 20%,what is the equipment's EVA?
A) $23,600
B) $90,000
C) $242,000
D) $332,000

The Division Director for Natchez Corporation's Mississippi Division,which Operates as an Investment