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 per cent per year.

Calculate the economic valued added for Division L for the year ended 30 April 2018.