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H55 Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax income
H55 Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax income of $3,570,000. Total interest expense was $1,690,000, and the hospitals tax rate was 35 percent. Hospital assets totaled $33,000,000, and noninterest-bearing current liabilities were $11,400,000. Superior has established a required rate of return equal to 17 percent of invested capital. Calculate the residual income/EVA of H55 Hospital.
What is the residual income/EVA $______
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