Economic Value Added

Falconer Company had net (after-tax) income last year of $13,489,186 and total capital employed of $128,517,100. Falconer's actual cost of capital was 8%.

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 creating Wealth

Falconer is Destroying wealth