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Sipacore Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the

Sipacore Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that collects and disposes of residential garbage. Information related to the two subsidiaries follows:

Hazardous Waste

Residential Waste

Total assets

$14,076,000

$80,040,000

Noninterest-bearing current liabilities

3,036,000

12,144,000

Net income

1,718,000

6,072,000

Interest expense

1,262,000

7,384,000

Required rate of return

10%

13%

Tax rate

15%

15%

Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made, EVA is equivalent to residual income. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)

Hazardous Waste

Residential Waste

EVA

$enter a dollar amount

$enter a dollar amount

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