Lotus LTD is a company that manufactures shoes. It has to decide if the project it is about to embark on will add economic value to the company. The management decides to use EVA to determine it. So it is trying to look at different components that are distributing to its success. The following information used is on the table below: $ 18,500 Current liabilities (non-interest bearing] Current Assets Long term liabilities Equity Accumulated Depreciation Operating Expenses $ 45,600 $ 82,500 S 110,700 S 14,000 S 32,600 Tax rate Gross profit Depreciation Expense 19% $63,000 $3,500 Interest on debt Research & Development Training cost of employees Government Bond Rate Market Risk $ 5.000 $ 9.100 $ 11,500 4.29 1.3 Market Risk 1.3 Market index at start 24600 Market index at the end 27100 Hint: Be careful when using the depreciation provided. Note: Research & Development expenses and training expenses are alread included in operating expenses REQUIRED 1. Calculate EBIT (operating income) and tax expenses 2. Calculate net Plant, Property and Equipment [PPE] 3. Calculate WACC weighted average cost of capital)