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January 1 - December 31, Year 2 To facilitate your analysis, complete the following table, and use the results to answer the related questions. (Note:

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January 1 - December 31, Year 2 To facilitate your analysis, complete the following table, and use the results to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a dollar value is below $100, round your answer to two decimal places. If your answer is negative use a ) sign.) Using the change in Water \& Power's EVA as the decision criterion, which type of investment recommendation should you make to your clients? A buy recommendation A hold recommendation A sell recommendation Which of the following statements are correct? Check all that apply. For any given year, one way to compute Water \& Power's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital. Investor-supplied operating capital is recorded as accounts payable, accruals, and short-term investments. Water \& Power's NCF is calculated by adding its annual interest expense to the corresponding year's income. Other things remaining constant, Water \& Power's EVA will increase when its ROIC exceeds its WACC. Water \& Power's net income is growing at a rate greater than its sales. This could imply that either its revenues are growing than its expenses or that management is being effective in managing its costs while achieving the reported in remaining constant, either event should increase the value of the firm. January 1 - December 31, Year 2 To facilitate your analysis, complete the following table, and use the results to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a dollar value is below $100, round your answer to two decimal places. If your answer is negative use a ) sign.) Using the change in Water \& Power's EVA as the decision criterion, which type of investment recommendation should you make to your clients? A buy recommendation A hold recommendation A sell recommendation Which of the following statements are correct? Check all that apply. For any given year, one way to compute Water \& Power's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital. Investor-supplied operating capital is recorded as accounts payable, accruals, and short-term investments. Water \& Power's NCF is calculated by adding its annual interest expense to the corresponding year's income. Other things remaining constant, Water \& Power's EVA will increase when its ROIC exceeds its WACC. Water \& Power's net income is growing at a rate greater than its sales. This could imply that either its revenues are growing than its expenses or that management is being effective in managing its costs while achieving the reported in remaining constant, either event should increase the value of the firm

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