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A company that uses EVA reported the following results for 20X4 and 20X5 (in millions) Pretax Operating Income $5,698 (for 20x4) $5,700 (for 20X5) Cash
A company that uses EVA reported the following results for 20X4 and 20X5 (in millions) Pretax Operating Income $5,698 (for 20x4) $5,700 (for 20X5) Cash Taxes $1,676 (for 20x4) $1,600 (for 20X5) Average adjusted invested capital was $20,308 million in 20X4 and $18,091 in 20X5, and the cost of capital was 9% in both 20X4 and 20X5 1. Compute the company's EVA for 20X4 and 20X5 2. Compare the company's performance in creating value for its sharholders in 20X5 with that in 20X4
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