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What economic value added is

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Problem 1: If PFRS income of Genesis Company, adjusted for economic value added, is 15% of sales, capital employed is $5,000,000, the cost of capital is 8%, and sales is $12,000,000, then economic value added is:

Option 1: $1,800,000

Option 2: $1,400,000

Option 3: $7,000,000

Option 4: $3,200,000

Reference no: EM132793857

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