Scranton Shipyards has $11.0 million in total invested operating capital, and its cost of capital is 10%. Scranton has the following income statement:

Sales	$10.0 million
Operating costs	6.0 million
Operating income (EBIT)	$ 4.0 million
Interest expense	2.0 million
Earnings before taxes (EBT)	$ 2.0 million
Taxes (40%)	0.8 million
Net income	$ 1.2 million

What is Scrantons EVA? Answer options are provided in whole dollar.

Question 9 options:

	$975,000
	$1,495,000
	$1,235,000
	$1,300,000
	$1,040,000

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Question 10 (10 points)

Byrd Lumber has 2 million shares of common stock outstanding that sell for $17 a share. If the company has $49 million of common equity on its balance sheet, what is the companys Market Value Added (MVA)? Answer options are provided in whole dollar.

Question 10 options:

	-12,000,000
	-15,000,000
	-11,250,000
	-17,250,000
	-13,500,000