Herbal Resources is a small but profitable producer of dietary supplements for pets. This is not a high-tech business, but Herbal’s earnings have averaged around $1.2 million after tax, largely on the strength of its patented enzyme for making cats no allergenic. The patent has eight years to run, and Herbal has been offered $4 million for the patent rights. Herbal’s assets include $2 million of working capital and $8 million of property, plant, and equipment. The patent is not shown on Herbal’s books. Suppose Herbal’s cost of capital is 15 percent. What is its EVA?