1 Last year, Simplex Robotics had $8 million in operating income (EBIT). The company had net depreciation expense of $2 million and an interest expense of $1 million; its corporate tax rate was 32 percent. The company has $12 million in current assets and $5 million in non-interest-bearing current liabilities; it has $18 million in net plant and equipment. It estimates that it has an after-tax cost of capital of 10 percent. Assume that Simplex’s only non-cash item is depreciation. What was the company’s EVA?
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