When compared with which of the following,the EVA of an investment center will be more meaningful?
A)Target EVAs
B)EVAs from other investment centers
C)EVAs from previous periods
D)All of these choices

Question

Quizplus · Accepted Answer

EVA (Economic Value Added) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit. Comparing EVA with target EVAs, EVAs from other investment centers, and EVAs from previous periods can all provide meaningful insights into performance, improvement over time, and relative efficiency or effectiveness against other units or benchmarks.

When Compared with Which of the Following,the EVA of an Investment