EVA For 2014, Everyday Electronics reported $22 5 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 9% and its federal-plus-state income tax rate was 35%.

What was the firm’s Economic Value Added (EVA), that is, how much value did management add to stockholders’ wealth during 2014?

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