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As the Staff Accountant for NYC Investment Center #1, Compute

Question 102

Essay

As the staff accountant for NYC Investment Center #1, compute the center's EVA, using the following information:
 Pretax Operating income $900,000 Income taxes 270,000 Total assets 1,500,000 Total liabilities 1,000,000 Longterm liabilities 100,000 Cost of capital 55%\begin{array}{|l|l|}\hline \text { Pretax Operating income } & \$ 900,000 \\\hline \text { Income taxes } & 270,000 \\\hline \text { Total assets } & 1,500,000 \\\hline \text { Total liabilities } & 1,000,000 \\\hline \text { Longterm liabilities } & 100,000 \\\hline \text { Cost of capital } & 55 \%\\\hline \end{array}

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EVA = ($900,000 - $2...

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