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How much economic value added results

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Dr. Don's Wok of Shame, Inc. (an Asian fusion restaurant with one star reviews) has established a target rate of return of 16% for all divisions. For the most recent year, Division generated sales of $10,000,000 and expenses of $7,500,000. Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000. Use average assets as the investment base.

Problem1 : How much economic value added results from the above?

Reference no: EM132950500

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