According to its income statement, Choxite Manufacturing's operating income, EBIT, is $600,000, its interest expense is $102,000, and its marginal tax rate is 40 percent. Choxite's balance sheet shows it has invested capital equal to $2.2 million. If its average cost of funds is 15 percent, what was Choxite's economic value added (EVA)?

7-24 According to its incomestatement, Choxite Manufacturing's operating income, EBIT, is $600,000, its interest expense is $102,000, and its marginal tax rate is 40 percent. Choxite's balance sheet shows it has invested capital equal to $2.2 million. If its average cost of funds is 15 percent, what was Choxite's economic value added (EVA)? (LO 7-3)