\n Paula Boothe, president of the\u00a0Bramble\u00a0Corporation, has mandated a minimum\u00a010% return on investment for any project undertaken by the company. Given the company\u2019s decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least\u00a012%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a\u00a014% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $1,800,000\u00a0in a new line of energy drinks that is expected to generate $312,000\u00a0in operating income. Assume that\u00a0Bramble\u00a0Corporation\u2019s actual weighted-average cost of capital is\u00a010% and its tax rate is\u00a032%.Calculate the economic value added of the proposed new line of energy drinks.\u00a0(If the economic value added is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125). Round answer to 0 decimal places, e.g. 5,125.)Economic value added$enter the economic value added in dollars rounded to 0 decimal places\n <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Paula Boothe, president of the\u00a0Bramble\u00a0Corporation, has mandated a minimum\u00a010% return on investment for any project undertaken by the company. Given the company\u2019s decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least\u00a012%. The Energy Drinks division, under the direction of manager Martin […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/283164"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=283164"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/283164\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=283164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=283164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=283164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}