The CEO of TPI Inc. considers the possibility to restructure one of the business segments of TPI. The analysts at TPI have prepared projections for the operations of the segment. These forecasts are provided in Table A. In addition to that, they have estimated that the cost of capital for this segment would be 14%, while its long-term growth rate would be 7%. Moreover, you know that the taxrate is 38% and the initial invested capital is $70 million.Your task is to perform EVA analysis of the segment (assume the current year is 2007).

Table A
	2008	2009	2010	2011	2012
EBIT	24.8	28	32	34	37
Depreciation	5.8	7.6	9.2	10.2	11
Increase in Deffered Tax	0.8	0.6	0.7	0.7	1
Capex	18.2	12.2	14.3	14.3	12
Change in NWC	-0.8	-0.8	1	1.8	0

Hint: NOPATis EBIT*(1-t) + Increase in DeferredTax.