EVA (economic value added) :
A) Is another name for return on investment (ROI) .
B) Is considered an inferior method of evaluating the short-term financial performance of an investment center.
C) Encourages investment center managers to accept new investments that have an ROI greater than the existing ROI of the center.
D) Of $100,000 for an investment center indicates that the investment center earned $100,000 of after-tax profit for the company as a whole.
E) Of $100,000 for an investment center indicates that the invest center's economic profit for the period was $100,000.
Correct Answer:
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