Which of the Following Is a Key Difference Between EVA

question 7

Multiple Choice

Which of the following is a key difference between EVA and residual income?

• A) The weighted average cost of capital is used to calculate EVA, but not necessarily for residual income.
• B) Net profit is used to calculate residual income but is irrelevant for EVA.
• C) EVA has a long term focus, but residual income has a short term focus.
• D) There is no difference between EVA and residual income.

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