Economic Value Added attempts to measure a firm's economic profit rather than its accounting profit.

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Economic Value Added (EVA) is a financial performance measure that calculates the amount of residual wealth generated by a company after all the costs of capital have been paid. It aims to measure a firm's economic profit by subtracting the cost of the capital employed from the net operating profit after tax (NOPAT). In contrast, accounting profit is calculated as revenues minus expenses, which does not consider the opportunity cost of capital.

Economic Value Added Attempts to Measure a Firm's Economic Profit