risky investment and probably commands a 13 -point premium above the 5 percent rate on long-teren Treasury bonds. Cempute EVA under each of the following indopendent scenarios that Brenstet is coritidering. Required: answer as a negative amount. 1. No changet are mades calculate EVA using the original data. for beth yean. 3. Brewst f is considening expanding but needs additonal capital, The company could borrow money, but it is considering seling more common stock, which woild increse equity to 70 peroent of total finencing. Total capital employed would be $3,900,000. The new after-tax operating income would be $370,000. Using the orlginal data, caloulate EVA. Then, recalculate EvA assuming the materials substitution described in Requirement 2. New after-tax income will be 3370,000 , and in Year 1, the pretium will be 11 percent sbere the long-term Tressury rate. In Year 2 , it will be 8 percent above the long-term Treasury rate. (Hint. You will calculate three EVAs for this reculirement.)