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Economic Value Added (EVA) 

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

Term Of The Day

Will increasing invested capital to take advantage of projects with positive NPV increase EVA or NOPAT?

Yes, both.

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.

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