Answer the Following Questions Regarding Economic Value Added (EVA)

question 121

Essay

Answer the following questions regarding economic value added (EVA):
a. What is it intended to do?
b. How is it measured?
c. How is the measurement different than that of RI?
d. Whyis EVA a better performance measure of RI?
e. What is the major problem with using EVA as a long-term performance measure?

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Definitions:

Consistency

Consistency refers to the quality of achieving a level of performance or behavior that does not vary greatly in quality over time.

Persuader

An individual or entity that uses communication and argumentation techniques to influence others' beliefs, attitudes, or actions.

Cognitive Dissonance

A psychological phenomenon where there is discomfort or mental conflict due to holding contradictory beliefs or attitudes, leading to an internal push for resolution.

Social Judgment Theory

A theory that explains how individuals perceive and evaluate a communication message against their existing attitudes, influencing persuasion and attitude change.