Senior Honors Theses

Publication Date

4-11-2008

School

School of Business

Major

Business: Finance

Primary Subject Area

Business Administration, General

Keywords

Economic Value Added

Disciplines

Finance and Financial Management

Abstract

The purpose of this paper is to provide an overview and analysis of the Economic Value Added metric. Several large, well known companies have begun to use EVA in recent years as an internal measure of performance, and one may speculate that its popularity will only continue. This paper shows what the EVA metric is and highlights some advantages and disadvantages from its proponents and critics.

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