Which of the Following Specifications for Calculating EVA® Is Correct

question 120

Multiple Choice

Which of the following specifications for calculating EVA® is correct?

• A) EVA® = accounting income/investment.
• B) EVA® = economic profit/equity equivalents.
• C) EVA® = NOPAT/investment, where NOPAT = net operating profit after (cash) taxes.
• D) EVA® = NOPAT − Imputed charge on EVA® capital, where NOPAT = net operating profit after (cash) taxes.
• E) EVA® = reported operating profit, after tax − imputed charge on average investment in the subunit.

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