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Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: Sales $10.0 million Operating
Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC 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 Scranton's EVA? Answer options are provided in whole dollar.
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