General Studies · Value Based Management

Economic Value Added (EVA) is defined as:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Operating profit before tax minus interest expense
2Net profit after tax divided by total equity
3Gross profit minus total debt charges
4Net Operating Profit After Tax (NOPAT) minus the cost of capital used to finance the investment✓

Correct answer

Net Operating Profit After Tax (NOPAT) minus the cost of capital used to finance the investment

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