If a company's NOPAT (Net Operating Profit After Tax) is $500,000, and its Capital Employed is $2,000,000, and the WACC is 8%, what is the company's EVA?

Economic Value Added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

The formula for EVA is:

EVA = NOPAT - (WACC * Capital Employed)

Given the values in the question:

NOPAT = $500,000 Capital Employed =$2,000,000 WACC = 8% (or 0.08 in decimal form)

We can substitute these values into the formula:

EVA = $500,000 - (0.08 *$2,000,000)

Calculating the value inside the brackets first:

0.08 * $2,000,000 =$160,000

Then subtract this from NOPAT:

EVA = $500,000 -$160,000

So, the company's EVA is $340,000.