How are managements actions incorporated iN EVA and MVA How are EVA and MVA related

MVA, the difference between book and market value, measures management's ability to maximize shareholder value. EVA accounts for the true economic profit of a firm, including the firm's cost of equity capital. When management invests in projects that return excess profit over the cost of debt and equity capital, EVA is positive. A positive EVA increases shareholder value and contributes to keeping MVA positive.