Harry Hermes Delivery Service's Has Been Restructured to Stem Losses

Multiple Choice

Harry Hermes Delivery Service's has been restructured to stem losses. The company's EVA for the year just ending was ($300,000) . In its medium range plan Harry Hermes has projected EVA for the following three years to be ($150,000) , $25,000, and $500,000, respectively. If the company's weighted average cost of capital is 10%, what is the gain or loss in shareholder value over the period?

A) ($36,408)
B) ($40,055)
C) $23,622
D) $75,000
E) $185,168