The following are disadvantages of using EVA as a measure of performance except:
A) EVA does not measure present value
B) EVA rewards taking project with quick paybacks and penalizes taking projects with longer payback periods
C) EVA reduces explicit monitoring by top management
D) EVA is difficult to apply for start up ventures
Correct Answer:
Verified
Q23: The following firms have negative EVAs except:
A)
Q24: Calculate the economic income in years 1,
Q25: Generally, firms with high levels of intangible
Q26: Economic rate of return is defined as:
A)
Q27: Economic profit (EP) is calculated as follows:
A)
Q29: Economic Value Added (EVA) is calculated as
Q30: If the cost of capital is 15%,
Q31: According to the survey of senior managers
Q32: The plant manager can improve EVA by:
I.
Q33: A firm has an average investment of
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