Michigan Company
Ann Arbor Division of the Michigan Company Has

Michigan Company
Ann Arbor Division of the Michigan Company has the following statistics for its most recent operations:
$\begin{array}{ll}\text { Assets available for use (Market Value) } & \$ 3,600,00 \\\text { Assets available for use (Book Value) } & \$ 2,000,00 \\\text { Am Arbor Division's return on investment } & 25 \% \\\text { Am Arbor Division's residual income } & 200,000 \\\text { Return on investment (entire Michigan Company) } & 20 \%\end{array}$

Refer to Michigan Company.Compute EVA assuming the cost of capital is 10% and the tax rate is 40%.

A) $ 90,000
B) $ 150,000
C) $0
D) $ (60,000)