Division L has reported a net profit after tax of £8.6m for the year ended 30 April 2018. Included in the costs used to calculate this profit are the following items:
● Interest payable of £2.3m;
● Development costs of £6.3m for a new product that was launched in May 2017, and is expected to have a life of three years;
● Advertising expenses of £1.6m that relate to the relaunch of a product in June 2018.
The net assets invested in Division L are £30m.
The cost of capital for Division L is 13 percent per year.
Calculate the economic valued added® for Division L for the year ended 30 April 2018.