a startup company | ||
| NPV | Positive (given) | |
| Invested capital | ↑(=when increasing invested capital) | |
| NOPAT | ↑(*2) ↑ | |
| $WACC | ↑(*2) | |
| EVA = Economic profit (*1) | ↑ |
(*1) EVA = Economic Profit = NOPAT - $WACC
(*2) The increase in NOPAT will be larger than the increase in $WACC, so EVA will increase.
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