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Question 4: The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000.
The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit
after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?
A. 500,000
B. 840,000
C. 8,000,000
D. 9,700,000
Correct Answer: D
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