Companies using EVA consider research and development to be a capital investment.

Name: Companies using EVA consider research and development to be a capital investment.
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Question

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Companies that use Economic Value Added (EVA) consider research and development to be a capital investment because it is expected to generate long-term profits for the company. EVA considers all capital investments, including R&D, as an expense that needs to be covered by the return on investment.

Companies Using EVA Consider Research and Development to Be a Capital