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QUESTION

For 2005, Bargain Basement Stores reported EBIT of $3,900.

For 2005, Bargain Basement Stores reported EBIT of $3,900. The company has $20,500 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 10%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA)?

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