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

Required 

Calculate EVA for 2020. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over three 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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2020 2019 2018 Sales $380,000,000 $250,000,000 $190,000,000 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 126,900,000 92,850,000 69,970,000 Less taxes on income 25,380,000 18,570,000 13,994,000 Net income $ 101,520,000 $ 74,280,000 $ 55,976,000 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%