The following income statements and other information are available for the Schneider Company:

Required
Calculate EVA for 2017. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over 3 years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above.

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2016 2015 2017 Sales $380,000,000 $190,000,000 $250,000,000 Less cost of goods sold 210,000,000 120,000,000 91,000,000 Gross margin 170,000,000 130,000,000 99,000,000 Less: Selling and administrative costs Research and development 27,500,000 24,750,000 19,580,000 15,600,000 12,400,000 9,450,000 Income from operations Less taxes on income 126,900,000 92,850,000 69,970,000 38,070,000 20,991,000 27,855,000 $ 88,830,000 $ 64,995,000 $ 48,979,000 Net income Total assets $715,000,000 $665,000,000 $441,000,000 Noninterest-bearing current liabilities Cost of capital 14,000,000 11,300,000 9,880,000 12% 12% 12%