Brewster Company manufactures elderberry wine. Last year, Brewster earned operating income of $188,000 after income taxes, Capital employed equaled $2.2 million, Brewste 45 percent equity and 55 percent 10-year bonds paying percent interest. Brewster's marginal tax rate 40 percent. The company is considered a fairly risky investment and probably commands a 13 point premium above the percent rate on long-term Treasury bonds Jonathan Brewster's sunts, Abby and Martha, have just retired, and Brewster the new CEO of Brewster Company. He would like to improve EVA for the company Compute EVA under each of the following independent scenarios that Brewster is considering Requiredi Use a vpreadsheet to perform your calculations and round all interim and percentage figures to four decimal places. If the EVA in negative, enter your answer as negative amount 1. No chances are made de EVA wong the onpinal data 2. Du will be used to replace another natural ingredient (Momic number 3) in the elderberrywe. This should not affect costs but will begin to affect the market assessment of Premier Company, brining the premium above long term Treasury bills to 3 percent the first year and a percent the second year Calculate vnd EVA for both years EVA Yew 2100 x Yes 2 3. Hewster is considering expanding but needs additional copital. The company could borrow money, but it condining sing more mon stock, which would increase Year 2 3. Brewster is considering expanding but needs additional capital. The company could borrow money, but it is considering selling more common stock, which would increase equity to 80 percent of total financing total capital employed wordd be $3,800,000 The new after tax operating income would be $395,000. Using the onginal data, calculate EVA. Then, recalculate EVA soming the materials substitution described in Requirement 2. Newster-tax income wil be $395,000, and in Year 1, the premium will be 11 percent above the Song-term Treasury rate In Year 2, it will be percent above the long term Treatury rate. (Hint: You will calculate three EVAs for this requirement.) EVA Year 1 Year 1 (11% premium) Y 2 (premum) $