Economic Value Added

Falconer Company had net (after-tax) income last year of $12,746,662 and total capital employed of $124,046,940. Falconer's actual cost of capital was 11%.

Required:

1. Calculate the EVA for Falconer Company. Enter negative values as negative numbers, if required. Round your answer to the nearest dollar. $

2. Conceptual Connection: Is Falconer creating or destroying wealth? Falconer is destroying wealth