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Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a hightech business, but Herbal's earnings have averaged around

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Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a hightech business, but Herbal's earnings have averaged around $1.4 million after tax, largely on the strength of its patented enzyme for making cats nonallergenic. The patent has eight years to run, and Herbal has been oftered $3.8 million for the patent rights. Herbal's assets include $2.2 million of working capital and $8.4 million of property, plant, and equipment. The patent is not shown on Herbal's books: Suppose Herbal's cost of capital is 17% What is its EVA? (A negotive onswer should be indicated by o minus sign. Do not round intermediote calculations. Enter your answer in millions rounded to 3 decimal places.)

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