This work presents a notion of residual income called
Systemic Value Added (SVA). It is antithetic to
Stewart’s (1991) EVA, though it is consistent with it in
overall terms: a project’s Net Final Value (NFV) can be
computed as the sum of capitalized EVAs or as the sum of
uncapitalized SVAs. As a result, SVA and EVA decompose
the NFV in different ways. Two numerical examples show
the application of the model proposed. The two notions
are the result of a different cognitive approach. The
existence of possible formal translations of the
residual income concept induces to regard residual
income as a mere conventional notion. pdf
