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Worldatwork Exam CECP Topic 1 Question 20 Discussion

Actual exam question for Worldatwork's Certified Executive Compensation Professional Exam exam
Question #: 20
Topic #: 1
[All Certified Executive Compensation Professional Exam Questions]

The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

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Suggested Answer: D

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