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5) Scranton Shipyards has $11.0 million in total invested operating capital, and its Cost of capital is 10%. Scranton has the following income statement: Sales

5) Scranton Shipyards has $11.0 million in total invested operating capital, and its Cost of capital is 10%. Scranton has the following income statement: Sales $10.0 million (EBIT) $ 4.0 million Interest expense 2.0 million (EBT) $ 2.0 million Taxes (25%) 0.5 million Net income $ 1.5 million What is Scrantons EVA? Explain what does it mean.

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