Economic value added (EVA) can be computed as net income minus interest expense minus capital charge.

Name: Economic value added (EVA) can be computed as net income minus interest expense minus capital charge.
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Economic Value Added (EVA) is calculated as Net Operating Profit After Taxes (NOPAT) minus the capital charge, which is the cost of capital times the capital invested. It does not involve subtracting interest expense directly.

Economic Value Added (EVA) Can Be Computed as Net Income