1. Waldorf Company has two sources of funds: long-term debt with a market and book value of $5,200,000 issued at an interest rate of 13%, and equity capital that has a market value of $4,200,000 (book value of $2,400,000). Waldorf Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 13%, while the tax rate is 25%.

   	Operating Income	Assets	Current Liabilities
   St. Louis	$480,000	$2,000,000	$100,000
   Cedar Rapids	$620,000	$2,000,000	$310,000
   Wichita	$1,020,000	$6,000,000	$600,000

   What is the Economic Value Added (EVA) for Cedar Rapids? (Round intermediary calculations to four decimal places.)

   		$275,720
   		$430,720
   		$241,000
   		$465,000