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Question - Marx 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 $3,010,000. Total interest expense was $1,419,000, and the hospital's tax rate was 20 percent. Hospital assets totaled $30,100,000, and noninterest-bearing current liabilities were $9,804,000. Superior has established a required rate of return equal to 18 percent of invested capital. Calculate the residual income/EVA of Marx Hospital?
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