Economic Value Added (EVA)

Biological Parallel

Trees calculate EVA implicitly: a branch survives only if photosynthetic revenue exceeds structural maintenance costs plus the opportunity cost of nutrients allocated elsewhere. Shaded lower branches that consume more than they produce undergo apoptosis—the tree harvests their remaining nutrients and redirects capital to higher-ROI canopy growth. EVA isn't a financial abstraction; it's the algorithm that determines which biological assets get pruned and which get compounded.