Scranton Shipyards has $8.0 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement:  Sales$10.0 millionOperating costs6.0 millionOperating income (EBIT)$ 4.0 millionInterest expense2.0 millionEarnings before taxes (EBT)$ 2.0 millionTaxes (40%)0.8 millionNet income$ 1.2 millionWhat is Scranton's EVA? Answer options are provided in whole dollar.

A. $1,840,000
B. $2,000,000
C. $1,600,000
D. $1,520,000
E. $1,440,000


Answer: C

Business

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