Which of the following is a performance measure?
A) retained earnings
B) market value
C) present value of cash flows
D) economic value added

Question

Quizplus · Accepted Answer

Economic value added (EVA) is a performance measure that calculates the net operating profit of a firm after deducting its capital cost. This measure assesses the actual economic profit generated by a firm and is a better indicator of a company's financial performance than traditional accounting measures such as retained earnings or market value. The present value of cash flows is a valuation metric, while retained earnings and market value are financial statements.

Which of the Following Is a Performance Measure