A multinational chemical company, headquartered in Germany, currently has a method where they calculate EVA based on the euro value of their total assets (What the company owns such as buildings, equipment inventory, etc.). Here is how they do it.

Step 1: Add the total euro value of their assets

Step 2: Multiply their total assets euro value by their WACC %

Step 3: Subtract the euro value, in point 2 above, from their operating income to get their EVA.

QUESTION:

Given the information below, calculate their euro value EVA.

Asset value: 86M

Operating income: 8M

WACC: 10%