Economic Value Added (EVA)is Defined as Follows

question 16

Multiple Choice

Economic Value Added (EVA) is defined as follows

• A) Change,year on year,in the net present value of after-tax operating profit adjusted for the interest expense tax shield.
• B) Residual Income adjusted for the after-tax effects of accounting adjustments and of the interest expense tax shield.
• C) Net operating after-tax profit minus a cost of long-term financing adjusted for after-tax effects of accounting adjustments.
• D) Net present value of future operating earnings adjusted for R&D,training and commercial expenses and after-tax effects of accounting adjustments.

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