Recon Resources is a small but profitable producer of floor mats. This is not a high-tech business, but Recon's earnings

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Recon Resources Is A Small But Profitable Producer Of Floor Mats This Is Not A High Tech Business But Recon S Earnings 1 (62.05 KiB) Viewed 18 times

Recon Resources is a small but profitable producer of floor mats. This is not a high-tech business, but Recon's earnings have averaged around $1.4 million after tax, largely on the strength of its patented enzyme for making non-slip floor mats. The patent has eight years to run, and Recon has been offered $3.8 million for the patent rights. Recon's assets include $2.2 million of working capital and $8.4 million of property, plant, and equipment. The patent is not shown on Recon's books. Suppose Recon's cost of capital is 17%. What is its EVA? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) EVA million