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How much value did the management

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For 2016, Gourmet Kitchen Products reported $23 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 9% and its federal plus-state income tax was 36%. What was the firm's economic value added (EVA), that is, how much value did the management add to stockholders' wealth during 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

Reference no: EM131205808

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