Question: TSW Inc. reported $ 1 2 , 2 5 0 of sales and $ 7 , 4 0 0 of operating costs ( including depreciation

TSW Inc. reported $12,250 of sales and $7,400 of operating costs (including depreciation). The company had $18,000 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 8.5%, and the federal-plus-state income tax rate was 25%. What was TSW's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during the year?

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