EVA
EVA results analysis Fluid Milk Division. ... The results of the EVA analysis show a $20892. ... And a last mention has to be given to the extremely high investment in assets of this division, which results in a truly high cost of capital, making its EVA calculations even more disappointing. ... This division fails to generate profits big enough to cover its cost of capital, consequently resulting in a negative EVA figure. ... The results of the EVA analysis support all the previous conclusions. The division gets to generate a positive NOPAT, but due to its high assets requirements, the high cost of capital make the division to end up with a negative EVA. ... The results of the EVA analysis show that this division by far is the one that generates the larger NOPAT, but at the same time this NOPAT is generated with a huge assets base, what finally, when determining the cost of the capital used, makes the division show a negative EVA and consequently destroying value for the shareholders.