Multiple Choice
Why would the calculation of economic value added (EVA) alleviate the shortcoming of the return on investment measurement?
A) Because it is required by generally accepted accounting principles.
B) Because it is required for Securities and Exchange Commission reporting.
C) Because it assures compliance with Internal Revenue Service Code requirements.
D) Because managers many not accept good investment opportunities if the ROI of the investment is lower than the present ROI of the division.
Correct Answer:
Verified
Correct Answer:
Verified
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