Brewster Company manufactures elderberry wine. Last vear, Brewster eamed operating income of \$180,000 after income taxes. Capital empioyed equaled \$2 4 milien. Brewster is 40 percent equily and 60 percent 10 -year bonds paying 7 percent interest. Brewster's marginat tax rate is 40 pectent. The company is considered a fairly risky investment and probably commands a 13 -poin premium above the 5 percent rate on longterm Treasury bonds. Jonathan Erewster's aunts, ABsy and Martha, have just retired, and Brewster is the new CrO of Hirewster Company. He mould like to improve EVA for the compamy Compute EVA under each of th following independent scenarios that brewster 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 your 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 eiderberry wine. This should not affect costs but wil begin to effect the murket assessment of Erenster Compaty, bringng the premium atove long-term freasury bilts to 11 percent the first year and a percert the second year Caiculate revised Eva for boah years: 3. Brewater is comsidering expanding but needs additionsl captal. The compacy could borrow moner, bu it is considering seting more common stock, which wsuld increase equity to 70 percent of percent above the kng-term treasury rate. (Hint: You will calculate three Evas for this requirement.)