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Equity investors have contributed $250,000 to your start-up business, while creditors provided a loan of $300,000....

Equity investors have contributed $250,000 to your start-up business, while creditors provided a loan of $300,000. You have calculated your firm's WACC at 10 percent. The annual interest payment is $25,000 and the marginal corporate tax rate is 35 percent. Equity holders earned $38,750 in profit at the end of the year.

Calculate EVA using both methods. Explain your EVA answer.

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