Example: EVA as Capital Cost Traditionally a firm's performance measure is centered by accounting profit, just considering the interest payment for debts by ignoring the opportunity cost of equity capital Economic value Added(eva)includes the opportunity cost of equity capital o eVa= net profit after tax -cost of equity capitalExample: EVA as Capital Cost • Traditionally a firm’s performance measure is centered by accounting profit, just considering the interest payment for debts by ignoring the opportunity cost of equity capital. • Economic Value Added (EVA) includes the opportunity cost of equity capital . • EVA= net profit after tax –cost of equity capital