Brewster Company manufactures edderberry wine. Last year, Brewster earned operating incame of \$192,000 after income taxes, Capital employed equaled 52.5 million. Berewster is 40 percent equity and 60 percent 10 -year bonds paying 6 percent interest. Brewnter's marginal tax rate is 40 percent. The company is considered a fairly risky investment and probably commands a 12 -point promium obove the 5 percent rate on long-term Treasiar bonds. Compute EVA, under each of the following independent scenarios that \#rewster is considering. Required: Use a spreadsheet to perform your calculations and round all interim and percentage figures to four decimal places. If the EVA is negative, enter vour answer as a negative amount. 1. No changes are made; calculate EVA using the original data. 2. Sugar will be used to replace another natural ingredient (atomic number 33) in the elderberry wine. This should not affect costs but will begka to affect the market assessment of Brewster Company, bringing the premium above long-term Treasury bats to 10 percent the fint year snd 7 percent the secand year. Calculate revised EVA for both years. 3. Brewster is considering expanding but needs additional copital; The company could borrow money, but it is considering selling more common stock, which would increase equity to 70 percent of total financing. Total capital employed would be $3,600,000. The new affer-tax operating income would be 5385,000 . Using the original data, calculate EVA. Then, recalculate EVA assuming the materials substitution described in fequirement 2 . New after-tax income will be 5385,000 , and in Year I, the premium will be 10 percent above the long-term Treasury rate. In Year 2, it wil be ? percent above the long-term Treasury rate. (Hint: You will calculate three EVAs for this requirement.)