Hicks Health Clubs, Inc., expects to generate an annual EBIT of $518,000 and needs to obtain financing for $1,070,000 of assets. Its tax bracket is 33%. If the firm uses short-term debt, its rate will be 7.0%, and if it uses long-term debt, its rate will be 8.0%. By how much will their earnings after taxes change if they choose the more aggressive financing plan instead of the more conservative plan?

A $11,169

B ($7,169)

C ($11,169)

D $7,169