Economic value added (EVA) is positive when:

Question

BrainForge Quiz · Accepted Answer

B) A company after-tax operating profit exceeds its total cost of capital multiplied by invested capital. EVA = NOPAT - (WACC × Invested Capital). Positive EVA: company creates value above capital cost. Used as performance metric aligning management decisions with shareholder value creation.

Economic value added (EVA) is positive when:

✓ Correct Answer: Option B

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