5. (10 points)Rao Construction recently reported $20.50 million of sales, $12.60 million of operatingcosts other than depreciation, and $3.00million of depreciation. It had $8.50 million ofbonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions?

5. (10 points) Rao Construction recently reported $20.50 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions