The EVA metric effectively measures the amount of shareholder wealth that the firm\'s management has added to the firm\'s value during a time period. If EVA is positive , then management has increased value. While there cannot be a single factor which can be attributed to the managers performing their primary task i.e. MVA/EVA as they are basically interrelated. This is due to the fact that both aim towards creation of value. The only difference is in the calculation and the interpretation as defined by mathematical paradigms. EVA is the difference of NOPAT (Net Operating Profit After Taxes ) and Cost of Capital.This indicates the wealth the company generated over and above the cost of capital. THe MVA on the other hand is simply the difference between the current total market value and the capital contributed by investors (both shareholders and bondholders). Thus as the company performs well on the EVA metric and as it retained earnings rise so will the business. And as the business rises so will the share price and hence the MVA. SO basically it is all interrelated. EBIT = 80M-52M = 28M EVA = 28* (1-0.4) - 115*0.125 = 2.425 M MVA of a company is equal to the net present value of all future EVAs. Solution The EVA metric effectively measures the amount of shareholder wealth that the firm\'s management has added to the firm\'s value during a time period. If EVA is positive , then management has increased value. While there cannot be a single factor which can be attributed to the managers performing their primary task i.e. MVA/EVA as they are basically interrelated. This is due to the fact that both aim towards creation of value. The only difference is in the calculation and the interpretation as defined by mathematical paradigms. EVA is the difference of NOPAT (Net Operating Profit After Taxes ) and Cost of Capital.This indicates the wealth the company generated over and above the cost of capital. THe MVA on the other hand is simply the difference between the current total market value and the capital contributed by investors (both shareholders and bondholders). Thus as the company performs well on the EVA metric and as it retained earnings rise so will the business. And as the business rises so will the share price and hence the MVA. SO basically it is all interrelated. EBIT = 80M-52M = 28M EVA = 28* (1-0.4) - 115*0.125 = 2.425 M MVA of a company is equal to the net present value of all future EVAs..