The return on invested capital generated by a company minus the cost of the capital used in recreating the cash flow best describes
A) economic value added.
B) return on investment.
C) break-even analysis.
D) NPV analysis.

Question

Quizplus · Accepted Answer

Economic value added (EVA) is a measure of a company's financial performance that calculates the return on invested capital minus the cost of that capital. It is a way to determine if a company is using its resources effectively to generate value for its shareholders. Options B, C, and D are not accurate descriptions of this concept.

The Return on Invested Capital Generated by a Company Minus