12. (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in 2019, what would you say about the firm's performance in 2019? Estimations of EVA (S MILLIONS) December December December December 2016 2017 2018 2019 $253 $288 $326 S458 Average 2016-2018 $289 SW Airline 2019 $247 NOPAT Operating Assets Non-Interest Bearing Liab. INVESTED CAPITAL $1,488 $269 $1,219 $1,602 $301 $1,301 $1,854 $318 $1,536 S2,344 $480 $1,864 $1,648 $296 $1,352 S856 $102 S754 s Cost of Capital S82 S88 $103 $125 $91 $39 EVA $171 $200 $223 S333 $198 $208 ROIC WACC Spread 20.75% 6.00% 14.75% 22.14% 6.00% 16.14% 21.22% 6.00% 15.22% 24.57% 6.00% 18.57% 21.37% 6.00% 15.37% 32.76% 7.00% 25.76% 12. (10 points) Based on the following estimates of the firm's EVA from 2016 through 2019 and an estimate of a peer firm's EVA in 2019, what would you say about the firm's performance in 2019? Estimations of EVA (S MILLIONS) December December December December 2016 2017 2018 2019 $253 $288 $326 S458 Average 2016-2018 $289 SW Airline 2019 $247 NOPAT Operating Assets Non-Interest Bearing Liab. INVESTED CAPITAL $1,488 $269 $1,219 $1,602 $301 $1,301 $1,854 $318 $1,536 S2,344 $480 $1,864 $1,648 $296 $1,352 S856 $102 S754 s Cost of Capital S82 S88 $103 $125 $91 $39 EVA $171 $200 $223 S333 $198 $208 ROIC WACC Spread 20.75% 6.00% 14.75% 22.14% 6.00% 16.14% 21.22% 6.00% 15.22% 24.57% 6.00% 18.57% 21.37% 6.00% 15.37% 32.76% 7.00% 25.76%