Question 7

Runner 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 $3,500,000. Total interest expense was $1,670,000, and the hospital's tax rate was 35 percent. Hospital assets totaled $34,100,000, 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 Runner Hospital.(Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)

Residual income/EVA $__________________