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Darjo is a small but profitable producer of gloves. This is not a high-tech business, but Darjo's earnings have averaged around $1.5 million after tax,
Darjo is a small but profitable producer of gloves. This is not a high-tech business, but Darjo's earnings have averaged around $1.5 million after tax, largely on the strength of its patented cloth to keep hands warm. The patent has eight years to run, and Darjo has been offered $3.7 million for the patent rights. Darjo's assets include $2.3 million of working capital and $8.6 million of property, plant, and equipment. The patent is not shown on Darjo's books. Suppose Darjo's cost of capital is 16%. 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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