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Problem 12-19 EVA Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a high-tech business, but Herbal's earnings
Problem 12-19 EVA Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a high-tech business, but Herbal's earnings have averaged around $1.8 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 offered $3.4 million for the patent rights. Herbal's assets include $2.6 million of working capital and $9.2 million of property, plant, and equipment. The patent is not shown on Herbal's books. Suppose Herbal's cost of capital is 13%. What is its EVA? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) EVA million
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