The Jeske Company had the following financial results for two recent fiscal years (in millions):

Year 2 Year 1

Revenues $4,463 $4,510

Operating expenses $3,569 $3,615

Cash income taxes $292 $255

Average invested capital (total assets less current liabilities) $2,854 $2,689

1. Suppose that Jeske's cost of capital is 11.5%. Compute the company's EVA for years 1 and 2. Assume definitions of after-tax operating income and invested capital as reported in Jeske's annual reports without adjustments advocated by Stern Stewart or others.
2. Discuss the change in EVA between years 1 and 2.