ST-3. The management of Zaap.com (from ST-2) wishes to estimate EVA for each of the next four years of the firm's operations. An evaluation of the firm's invested capital reveals the follow- ing values beginning with the current period (year ()):

a. Calculate Zaap.com's EVAs for years 1 through 4. What do these values tell you about the value being created by Zaap.com?

b. What is Zaap.com's return on invested capital (ROIC) for each of the years 1 through 4? Relate the firm's ROIC to your EVA estimates.

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YEARS Current assets 0 $15,652.17 1 2 3 4 $17,347.83 $19,297.83 $21,540.33 $21,540.33 Property, plant, and equipment 15,652.17 18,000.00 20,700.00 23,805.00 23,805.00 Invested capital 31,304.34 35,347.83 39,997.83 45,345.33 45,345.33