Splash Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%. Splash has two operating divisions, the Blue division and the Gull division, with the following financial measures for the current year:

	Total Assets	Current Liabilities	Operating Income
Blue Div.	$9,500,000	$2,800,000	$1,055,000
Gull Div.	$11,000,000	$2,200,000	$1,200,000

Calculate EVA for the Gull Division.

		$196,800
		($82,560)
		$397,440
		($283,200)