Jikoni Company has 2 sources of funds: long-term debt with a market and book value of $15M issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million). Jikoni Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 15%, while the tax rate is 30%.

	Operating Income	Assets	Current Liabilities
Smith Falls	$815,000	$3,750,000	$800,000
Brocksville	$1,100,000	$5,000,000	$1,200,000
Stoneybrook	$2,450,000	$9,250,000	$3,180,000

What is the EVA for Smith Falls?

A)

$305,000

B)

$338,563

C)

$220,188

D)

$275,500

E)

$255,500