(Learning Objective 5: Measuring economic value added) Compute economic value added (EVA®) for Beverly Software. The company’s cost of capital is 5%. Net income was

$770,000, interest expense $409,000, beginning long-term debt $700,000, and beginning shareholders’ equity was $3,060,000. Use unadjusted net income in your calculations. Round all amounts to the nearest thousand dollars.

Should the company’s shareholders be happy with the EVA®?