You are considering installing a new energy$-$efficient lighting in your firm$$s warehouse. The installation will cost $$300,000,$ and you estimate total savings of $$75,000$ per year. The lights will depreciate evenly over five years, at which point they must be replaced. The cost of capital is $7\%$ per year.

Q$3.$ What is the firm$$s EVA in year $2?$

a$.-$$$1,800$

b$.-$$$2,400$

c$.$ $$2,800$

d$.$ $$1,600$

e$.$ None of the above.

Q$4.$ What is the firm$$s EVA in year $5?$

a$.$ $$13,600$

b$.$ $$12,400$

c$.-$$$11,800$

d$.-$$$12,600$

e$.$ None of the above.

Q$5.$ What is the firm$$s MVA?

a$.$ $$6,514\mathrm{.}81$

b$.$ $$7,514\mathrm{.}81$

c$.$ $$8,987\mathrm{.}11$

d$.-$$$7,123\mathrm{.}16$

e$.$ None of the above.