• 1. Anthony Ltd is considering investment in a project with below details. Analyse this investment using only Economic Value-Added Method (EVA):
• It is a three-year project with initial investment of $6 Million, depreciating over three years using straight line method with zero salvage (residual) value at the end of year three.
• Estimated EBITDA for years 1-4 are $3 Million, $5 Million, $7 Million, and $9 Million respectively with WACC 14% and tax rate 30%.
• Increases in net working capital investment each year is 5% of new EBITDA. Should Anthony invest in this project?

(3 marks for correct invested capital, 3 marks for correct NOPAT for all year, 1 mark for discounting all EVAs, and commenting on the investment decision, show your discounting workings)