JRT Enterprises has long-term debt with a market value of \($2,000,000\) and equity with a market value of \($3,000,000.\) For the company, the cost of debt is 15%, while the cost of equity is 10%. The company’s total assets are \($800,000.\) During 2011, JRT reported after-tax profit of \($550,000.\) Information related to the company’s debt on its statement of financial position is shown below:

What is the EVA for JRT Enterprises?

a. $478,000

b. $460,000

c. $472,000

d. $490,000

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Liabilities Accounts payable Current portion of long-term loan Total current liabilities Long-term debt Bank loan Total long-term debt Total liabilities $ 50,000 150,000 $ 200,000 1,850,000 1,850,000 $ 2,050,000