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b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million. However, it is a modern design, and could be sold to another copper company for $99 million How should this fact change your calculation of EVA? (Negative answers should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EVA Answer is complete but not entirely correct. (0.63) 3 million

b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million. However, it is a modern design, and could be sold to another copper company for $99 million How should this fact change your calculation of EVA? (Negative answers should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EVA Answer is complete but not entirely correct. (0.63) 3 million

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million. However, it is a modern design, and could be sold to another copper company for $99 million How should this fact change your calculation of EVA? (Negative answers should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EVA Answer is complete but not entirely correct. $ (0.63) million
Transcribed Image Text:b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million. However, it is a modern design, and could be sold to another copper company for $99 million How should this fact change your calculation of EVA? (Negative answers should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.) EVA Answer is complete but not entirely correct. $ (0.63) million
The table below shows a condensed income statement and balance sheet for Androscoggin Copper's Rumford smelting plant (figures in S millions). Assume the cost of capital is 9% Income Statement for 2018 Revenue Raw materials cost Operating cost Depreciation Pretax income Tax at 215 Net income EVA $.57.06 18.66 21.05 4.46 $.12.87 2.70 5:10.17 Net working capital 5:16 million Assets, December 31, 2018 Investment in plant and equipment Less accumulated depreciation Net plant and equipment Total assets Answer is complete and correct. a. Calculate the plant's EVA (Enter your answer in millions rounded to 2 decimal places.) $ 7,04 69.73 21.05 $48.68 $55.72
Transcribed Image Text:The table below shows a condensed income statement and balance sheet for Androscoggin Copper's Rumford smelting plant (figures in S millions). Assume the cost of capital is 9% Income Statement for 2018 Revenue Raw materials cost Operating cost Depreciation Pretax income Tax at 215 Net income EVA $.57.06 18.66 21.05 4.46 $.12.87 2.70 5:10.17 Net working capital 5:16 million Assets, December 31, 2018 Investment in plant and equipment Less accumulated depreciation Net plant and equipment Total assets Answer is complete and correct. a. Calculate the plant's EVA (Enter your answer in millions rounded to 2 decimal places.) $ 7,04 69.73 21.05 $48.68 $55.72
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