Springfield Corporation,whose Tax Rate Is 40%,has Two Sources of Funds

Multiple Choice

Springfield Corporation,whose tax rate is 40%,has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%,and equity capital with a market value of $12,000,000 and a cost of equity of 12%.Springfield has two operating divisions,the Blue division and the Gold division,with the following financial measures for the current year:
$\begin{array}{|l|l|l|l|}\hline & \text {Total Assets} &\text { Current Liabilities} & \text {Operating Income} \\\hline\text { Blue Div. }&\$ 9,500,000 & \$ 2,800,000& \$ 1,055,000 \\\hline \text {Gold Div.} & \$ 11,000,000 & \$ 2,200,000 & \$ 1,200,000 \\\hline\end{array}$
What is Economic Value Added (EVA) for the Blue Division?

A) -$233,400
B) $21,960
C) $188,600
D) $433,960