For Purposes of Computing EVA,the Minimum Desired Rate or Return

question 4

Multiple Choice

For purposes of computing EVA,the minimum desired rate or return on an investment is known as

• A)ROI.
• B)cost of capital.
• C)residual income.
• D)profit margin.

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Definitions:

Economy

The system of production, consumption, and distribution of goods and services in a particular society or geographical area.

Production

The process of creating goods and services through the combination of labor, materials, energy, and technology.

Distribution

The process by which goods, services, or resources are spread or allocated across different areas or among various groups.

Exchange

The act of giving one thing and receiving another, particularly goods or services, in return either through barter or monetary purchase.