Principles of Corporate Finance

Residual Income & EVA

Income
Sales 550
COGS 275
Selling, G&A 75
200
taxes @ 35% 70
Net Income $130

Assets

Net W.C. 80

Property, plant and

equipment 1170

less depr. 360

Net Invest.. 810

Other assets 110

Total Assets $1,000

Quayle Quayle City City Subduction Subduction Plant ($mil)Plant ($mil)