XYZ Corp has $17.5 million in total investor-supplied operating capital, and its cost of capital is 5%. Scranton 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?

Question 17 options:

a)

$682,500

b)

$812,500

c)

$650,000

d)	$1,525,000