b. Within your company above, the Recruiting Division has $1,200,000 in total assets, which is the total capital employed by this division. The tax rate is 20% and the Earnings Before Interest and Tax (EBIT) of Recruiting is $100,000. What is the Economic Value Added (EVA) for the Recruiting Division?

*FYI: Cost of Debt = 5.0% (1-.20) = 4.0%

Also the WACC is 7.5% from problem a.

PS. I need to know the steps for the answers for me to understand. Please, and thank you.

c. Is the Recruiting Division adding to the economic value of this company?