A manager can improve EVA by
A) increasing assets and decreasing costs.
B) increasing sales and assets.
C) increasing cost of capital and assets.
D) decreasing assets and lowering cost of capital.

Question

Quizplus · Accepted Answer

Decreasing assets and lowering the cost of capital can improve EVA (Economic Value Added) by reducing the capital charge, thus increasing the value created above the cost of capital.

A Manager Can Improve EVA by