Shipyards has $20 million in total net operating capital. The companys WACC is 10 percent. The company 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?

		a. $ 400,000
		b. -$ 800,000
		c. $1,200,000
		d. $2,000,000
		e. $4,000,000