The Primary Limitation of Using Economic Value Added (EVA $\rarr$ )To Evaluate the Financial Performance of Investment Centers Is:
A)Complexity

question 85

Multiple Choice

The primary limitation of using Economic Value Added (EVA $\rarr$ ) to evaluate the financial performance of investment centers is:

• A)Complexity of the calculation.
• B)Dysfunctional long-term investment decisions that can be motivated by focusing on EVA\(\rarr\).
• C)Failure to include a measure of invested capital.
• D)Inability to use EVA\(\rarr\) to benchmark against competitor organizations.
• E)Inability to align managerial incentives with ownership interests.