Sino Manufacturing Limited is considering an investment on a machine where the machine is

to be financed by the issue of $200,000 ordinary shares, $200,000 preference shares, and $100,000 bonds. Given the weighted average cost of capital (WACC) is 15% and the investment is likely to generate Net Operating Profit after Tax (NOPAT) of $200,000. Assume a tax rate is 20%, calculate the Economic Value Added (EVA). Should the firm accept or reject

the investment? Explain your reason