Scranton Shipyards has $12.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: Sales $ 12.0 million

Operating costs 8.0 million

Operating income (EBIT) $ 4.0 million

Interest expense 2.0 million

Earnings before taxes (EBT) $ 2.0 million

Taxes (25%) 0.5 million

Net income $ 1.5 million

What is Scranton's EVA? Answer options are provided in whole dollar.

a. $2,750,000

b. $1,250,000

c. $4,250,000

d. $1,750,000

e. $250,000