Assuming that the weighted average cost of capital remains the same, EVA will increase by

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EVA (Economic Value Added) is a measure of a company's financial performance that is calculated by subtracting its cost of capital from its after-tax operating profit. Therefore, if a company invests in a project where the after-tax operating income is greater than the cost of capital, the EVA will increase. This is because the project is generating enough returns to cover its cost of capital and generate value for the company. On the other hand, investing in a project where the after-tax operating income is less than the cost of capital will decrease EVA as the project is not generating enough returns to cover its cost of capital. Increasing operating expenses or decreasing after-tax operating income will also decrease EVA as they reduce the company's profitability.

Assuming That the Weighted Average Cost of Capital Remains the Same