I need help solving these two questions. Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement:$ 12.0 million6.0 million$ 6.0 millionInterest expense2.0 million$4.0 millionEarnings before taxes (EBT)Taxes (25%)1.0 millionNet income$ 3.0 millionWhat is Scranton's EVA? Answer options are provided in whole dollar.SalesOperating costsOperating income (EBIT)a. $2,450,000O b. $2,050,000c. $950,000d. $6,550,000e. $3,950,000 Your uncle is about to retire, and he wants to buy an annuity that will provide him with $55,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 4.65%. Howmuch would it cost him to buy the annuity today?O a. $739,067.05O b. $715,876.17c. $761,227.47O d. $706,227.47O e. $727,403.22

Present value is an estimate of the present value of future cash values that may be received at a…

Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: $ 12.0 million 6.0 million $ 6.0 million 2.0 million $4.0 million Sales Operating costs Operating income (EBIT) Interest expense Earnings before taxes (EBT) Taxes (25%) 1.0 million Net income $3.0 million. What is Scranton's EVA? Answer options are provided in whole dollar. O a. $2,450,000 O b. $2,050,000 O c. $950,000 O d. $6,550,000 O e. $3,950,000

Scranton Shipyards has $20.5 million in total invested operating capital, and its WACC is 10%. Scranton has the following income statement: $ 12.0 million 6.0 million $ 6.0 million 2.0 million $4.0 million Sales Operating costs Operating income (EBIT) Interest expense Earnings before taxes (EBT) Taxes (25%) 1.0 million Net income $3.0 million. What is Scranton's EVA? Answer options are provided in whole dollar. O a. $2,450,000 O b. $2,050,000 O c. $950,000 O d. $6,550,000 O e. $3,950,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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