Economic Value Added (EVA) is a measure of economic profit that compares net operating profit to total cost of capital. In essence, it is the value generated from funds invested in a business. 381 more words
Increasing invested capital to take advantage of positive NPV projects will increase NOPAT and the dollar cost of capital $WACC. Because NPV is positive the increase in NOPAT will be larger than the increase in $WACC so EVA will increase.