The company’s turnover of cash and its projected cash budget suggest that the company is holding too much cash. SKI could improve its EVA by either investing the cash in productive assets, or returning the cash to shareholders. If SKI uses the cash for profitable investments, its costs will remain the same, but its operating income will rise, thereby increasing EVA. On the other hand, if the company chooses to return the cash to its shareholders, for example, by increasing the dividend or repurchasing shares of common stock, the company’s revenues would remain the same, but its overall cost of capital would fall, thereby increasing EVA.