Question

In conducting an EVA analysis for year 2 for a newly introduced product line, Bethune, Inc., which manufactures preassembled blower packages and other water treatment components. determined the EVA to be $28,000. The company uses an after-tax interest rate of 14% and a Te of 28%. The initial investment capital required for the new product was $585,000 and all equipment is 3-year MACRSdepreciated. Bethune's CEO knew that the gross income was $700,000, but he asked you to find out how much expense was associated with the new product line for year 2The expenses associated with the new product line for year 2 is​

Answer 1

Answer:

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