Problem 14-60 (Algo) Economic Value Added (LO 14-4) Normandy instruments invests heavily in research and development (R\&D), although it must currently treat its RBD expenditures as expenses for financlal accounting purposes. To encourage investment in R\&D, Normandy evaluates its division managers using EVA The company adjusts accounting income for R\&D expenditures by assuming these expenditures create assets with o two year life. That is, the RBD expenditures are capitalized and then amortized over two years. Aerospace Division of Normandy shows after-tax income of $18.004 million for year 2, R8D expenditures in year 1 amounted to $7204 million and in year 2, R\&D expenditures were \$12.004 million. For purposes of computing EVA. Normandy assumes all RLO expenditures are made uniformly over the year. Before adjusting for R\&D, Aerospace Division show5 assets of $72.004 mithion at the beginning of year 2 and current liabilities of $1,504,000. Normandy computes EVA using divisional investment at the beginning of the year and a 12 percent cost of capital. Required: Compute EVA for Aerospace Division for year 2. Notet Enter your answers in dollars, not in millions