Economic Value Added (EVA) Is a Very Well-Received Metric Used

Economic Value Added (EVA) is a very well-received metric used to evaluate a company's success generating a return that exceeds the cost of capital. Some have claimed that a business should always strive to focus on and generate EVA. Which of the following correctly identifies the formula for Economic Value Added?

A) After-tax Operating Income - (Weighted Average Cost of Capital × Invested Capital)
B) After-tax Operating Income + (Weighted Average Cost of Capital/Invested Capital)
C) Pre-tax Operating Income - (Weighted Average Cost of Capital/Invested Capital)
D) Pre-tax Operating Income + (Weighted Average Cost of Capital × Invested Capital)