Calculate EVA: NOPAT - (WACC x Invested Capital). Positive EVA means the business earns above its cost of capital. Negative EVA destroys shareholder value even with accounting profits.
Enter the values for the scenario you are assessing. Calculate EVA: NOPAT - (WACC x Invested Capital). Positive EVA means the business earns above its cost of capital. Negative EVA destroys shareholder value even with accounting profits. Use the eva result to inform your calculation.