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I 0-30 EVA Lohmann Corporation is a major supplier to makers of outdoor power equipment. According to the company's annual report, management subscribes to the

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I 0-30 EVA Lohmann Corporation is a major supplier to makers of outdoor power equipment. According to the company's annual report, \"management subscribes to the premise that the value of our company is enhanced if the capital invested in its operations yields a cash return that is greater than that expected by the providers of capital.\" The following data are from Lohmann's annual report that incorporate EVA adjustments to oper- ating profit and average invested capital (amounts in thousands): 20x1 20x2 Adjusted before tax operating prot 55 78,000 $ 80,000 Cash taxes 20,500 22,600 Adjusted average invested capital 650,000 600,000 Cost of capital 9.4% 9.4% 1. Compute the EVA for Lohrnann for 20X1 and 20x2. 2. Did Lohmann's overall performance improve from 20X1 to 2OX2? Explain

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