Demgit Plc is a company that operates in the construction sector in Lesotho The company has been operating for the past few years and is seen as a market leader in the construction Industry. The following is the summarised profit statement of Demgit Plc for the year ended 31 March 2021: M000 Operating profit before tax and interest 15 200 Interest expense 1 400 Profit before tax 13 800 Tax at 30 per cent 4 140 Profit after tax and interest 9 660 Additional information is as follows: 1. Non-cash expenses were M25 000 in the current year and M24 000 in the previous year were included in the calculation of operating profit. 2. The provision for doubtful debt was decreased from M34 000 at the start of the year to M27 000. 3. Economic depreciation is estimated to be M54 000 in the current financial year whereas historical depreciation included in the above profit calculation was M48 000. In previous years it can be assumed that economic and accounting depreciation were the same. 4. The capital employed (debt plus equity capital) recorded in the published financial statements at the start of the financial year was M40 million. 5. The before tax cost of debt was 9 per cent and the estimated cost of equity was 12 per cent. The rate of corporation tax was 30 per cent. 6. The company's capital structure was 70 per cent equity and 30 per cent debt. Required: (a) Calculate the Economic Valued Added (EVA) for the period ended 2021. Page 4 of 5 (14marks) (b) Indicate two circumstances where the use of EVA may be preferred to that of