You have been asked to assess the economic value added by ABC REIT. ABC REIT has a book value of equity $10 billion, and the REIT has no debt outstanding. Analysts expect ABC REIT to earn a 16% rate of return on assets. The REITs cost of equity is 10%. Assume ABC REIT will be able to grow its economic value added 2% a year in perpetuity. Estimate the implied EVA for ABC REIT.

What will happen to this implied EVA if ABC REIT were able to grow its economic value added by 4% a year in perpetuity and that nothing else changes?