1. Firm XYZ plans to invest $600,000 in a new project. This investment consists of $400,000 in newly issued debt and $200,000 in cash on hand. The borrowing rate is 3%, and the risk-free rate is 2%. The new investment is expected to generate $100,000 in EBIT for the firm, the tax rate is 20%. Calculate the economic value added (EVA) for the project. Please present detailed calculations, as failure to do so will result in a score of 0. Note: Select the appropriate equation from textbook pages 241 and 242 to compute the capital charge based on the provided information."