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NEW QUESTION: 3
ABC Company is considering investing in new production technology. ABC has projected that the investment would add $5,000,000 in additional operating profit and that the resulting balance sheet would show $7,000,000 in long-term debt and $11,000,000 in total equity. ABC has a 34% tax rate and a 10% WACC. Which of the following is the investment's EVA?
A. $2,200,000
B. $3,300,000
C. $1,500,000
D. $3,500,000
Answer: C


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