What is rcc eva


Road Construction Company (RCC) has $20 million in total investor-supplied operating capital. The company's after tax cost of capital is 10 percent. The company has the following income statement:

Sales $10.0 million

Operating costs 6.0 million

Operating income (EBIT) $ 4.0 million

Interest expense 2.0 million

Earnings before taxes (EBT) $ 2.0 million

Taxes (40%) 0.8 million

Net income $ 1.2 million

What is RCC's EVA?

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Business Management: What is rcc eva
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