Page 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 $3,570,000. Total interest expense was $1,610,000, and the hospital’s tax rate was 35 percent. Hospital assets totaled $36,000,000, and noninterest-bearing current liabilities were $11,900,000. Superior has established a required rate of return equal to 18 percent of invested capital.
Calculate the residual income/EVA of Page Hospital. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
Residual income/EVA $