Use the following information to answre this question.
Total assets
Total current liabilities
Total expenses
Total liabilities
Total revenues
Tax rate
After-tax cost of capital 10%
$150,000
100,000
55,000
115,000
80,000
40%
Invested capital is defined as total assets less total current liabilities. (round your
answers to one decimal)
Economic profit equals,
A) $8,000
B) $35,000
C) 10,000
D) $1,800
