A Firm Produces $124 Million of Net Income on $1,600

Multiple Choice

A firm produces $124 million of net income on $1,600 million of assets.Through a six-sigma project,the firm is able to decrease the assets employed to $1,450 million.Given a 5% cost of capital,what is the increase in the EVA?

A) $7.5 million
B) $44.0 million
C) $51.5 million
D) $96.5 million