Reasons for changes in EVA also need to be investigated. For individual projects, EVA is only really meaningful when looking at the whole lifespan of a project. In the early years of a project’s life, when the net book value of the assets is higher, the finance charge may also be higher, leading to a lower value of EVA , whereas in later years the reverse is true. My question is , how are the finance charge higher in the early years, and why is the EVA value lower Thanks.