Question

Economic value added (EVA) does not specify what should or should not be done to improve performance. true false

Answer 1

Answer:

True

Explanation:

Economic value added is used to evaluate the performance of the company by deducting the capital invested initially in operating profit. it is considered as an indicator which is induced to know the current profitable position of the company. Thus show how company management doing their work.

it is calculated as  

Economic value added = (Profit - initial capital)/ (net investment)