Use the information below to answer the following question(s):
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).

Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 40%.
What is the Tandem division's Economic Value Added (EVA)?
A) $136,000
B) $152,000
C) $280,000
D) $288,000

Question

Use the information below to answer the following question(s):
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).
  
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands). 
 Management's target rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 40%.
What is the Tandem division's Economic Value Added (EVA)?
A) $136,000 
B) $152,000 
C) $280,000 
D) $288,000

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The Answer of Use the information below to answer the following question(s):
The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands).
  
Management's target rate of return is 10% and the weighted average cost of capital is 8%. Tandem's effective tax rate is 35%.
-The Tandem division of the Great Adventures Cycles Company had the following results last year (in thousands). 
 Management's target rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 40%.
What is the Tandem division's Economic Value Added (EVA)?
A) $136,000 
B) $152,000 
C) $280,000 
D) $288,000

Use the Information Below to Answer the Following Question(s)