Bisbee Health Products invests heavily in research and development (R\&D), although it must currently treat its R\&D expenditures as expenses for financial accounting purposes. To encourage investment in R\&D, Bisbee evaluates its division managers using EVA. The company adjusts accounting income for R\&D expenditures by assuming these expenditures create assets with a two-year life. That is, the R\&D expenditures are capitalized and then amortized over two years. Western Division of Bisbee shows after-tax income of $8.2 million for year 2. R\&D expenditures in year 1 amounted to $3.3 million and in year 2, R\&D expenditures were $5.5 million. For purposes of computing EVA, Bisbee assumes all R\&D expenditures are made at the beginning of the year, Before adjusting for R\&D. Western Division shows assets of $30.2 million at the beginning of year 2 and current liabilities of $650,000. Bisbee computes EVA using divisional investment at the beginning of the year and a 16 percent cost of capital. Required: Compute EVA for Western Division for year 2. (Enter your answers in dollars, not in millions.)