Problem:
ABC's EBIT is $12 million. The depreciation expense is $0.5 million and interest expense is $0.5 million. The corporate tax rate is 30%. The company has 10 million in operating current assets and $3 million operating current liabilities. It has $12 million in net plant and equipment. The after-tax cost of capital (WACC) is 8%. Assume that the only non-cash item is depreciation. The total net operating capital last year was $15 million.
Required:
What was the company's economic value added (EVA)?
Note: Please provide full description.