The EVA method attempts to remove distortions to the investment decision that are created by GAAP.

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The Economic Value Added (EVA) method is a financial performance measure that aims to remove accounting distortions such as depreciation, amortization, and other non-cash expenses to provide a clearer picture of a company's true financial performance. Therefore, it attempts to remove distortions to the investment decision that are created by Generally Accepted Accounting Principles (GAAP).

The EVA Method Attempts to Remove Distortions to the Investment