Economic Value Added EVA) Is Calculated As

question 18

Multiple Choice

Economic Value Added EVA) is calculated as:

• A) NOPAT plus after-tax dollar cost of financial capital used
• B) ROE minus percentage cost of financial capital
• C) NOPAT minus after-tax dollar cost of financial capital used
• D) ROE plus the percentage cost of financial capital

---

Definitions:

Recovery Stage

A phase in the economic cycle or in the lifecycle of a project where performance begins to improve after a period of decline or recession.

Business Spending

The expenditure by businesses on goods and services, including capital goods and labor.

Consumer Spending

The total amount of money spent by consumers on goods and services within an economy.

Recession

Cyclical economic contraction that lasts for six months or longer.