Economic Profit vs. EVA why, different, names

ogoluwa

Vol 3, p 64 says Economic Profit = NOPAT - $WACC
Vol 4, p 533 says Economic Value Added = NOPAT - $WACC
Can anyone explain why there are two different names for the same thing?

Windjam

So there’s no diff between NOPAT and NOPLAT, EP and EVA?
I guess this stuff is so damn easy they need to mess with us with different terms for the same thing.

ayaz_mahmud369

NOPLAT and EP are used in Corp Fin.
NOPAT and EVA are used in the RI chapter (Equity).
yeah they just like to mess us up!!!

LPoulin133

Okay, just for a quick review, what’s the difference between Economic Profit and Economic Income?

mp3bu

Yeah but you don’t take into account the initial investment when calculating the ending or beginning market value, right? Just the NPV of the future cash flows.

rohitdoshi

i said atcf - so initial investment is not included.

tango_gs

CP….your going to KILL this one this year its scary how many posts have your answers in it!