Pelisse Packaging Ltd. has a cost of capital of 12%. The company's balance sheet at year end shows current assets of $2.2 million, capital assets of $6.1 million, current liabilities at $1.3 million, long-term liabilities of $4.1 million, shareholders equity of $2.9 million. Its income statement for the year shows sales revenue of $5.1 million, cost of goods sold of $2.1 million, salaries of $500,000, marketing and promotions of $350,000, administration expense of $300,000, rent expense of $100,000, and depreciation of $100,000. Non-operating income and expenses included interest expense of $250,000 and new product development costs of $550,000. Income taxes amounts to $230,000. Marketing and promotions are expected to impact revenues in this year and next, and the results of the new product development for an infinite period. After performing the common adjustments to the accounts, what is the EVA for Pelisse?

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The Answer of Pelisse Packaging Ltd. has a cost of capital of 12%. The company's balance sheet at year end shows current assets of $2.2 million, capital assets of $6.1 million, current liabilities at $1.3 million, long-term liabilities of $4.1 million, shareholders equity of $2.9 million. Its income statement for the year shows sales revenue of $5.1 million, cost of goods sold of $2.1 million, salaries of $500,000, marketing and promotions of $350,000, administration expense of $300,000, rent expense of $100,000, and depreciation of $100,000. Non-operating income and expenses included interest expense of $250,000 and new product development costs of $550,000. Income taxes amounts to $230,000. Marketing and promotions are expected to impact revenues in this year and next, and the results of the new product development for an infinite period. After performing the common adjustments to the accounts, what is the EVA for Pelisse?