Procter & Gamble uses Economic Value Added (EVA) to assess business performance. In July 2038, the company provides the following financial data:

• Net Operating Profit After Taxes (NOPAT): $40,000,000
• Capital Employed: $200,000,000
• Cost of Capital: 10%

Requirements:

• Calculate the Economic Value Added (EVA).
• Analyze the components contributing to EVA.
• Prepare a report on how EVA can be used to drive performance improvements.
• Recommend strategies to enhance EVA.
• Discuss the limitations of EVA as a performance metric.