What calculations always have to be made to the value of EVA to achieve the same value as SVA?
A) Capital invested would be added to the NPV of future EVA flows from which the market value of debt would be subtracted.
B) Find NPV of future EVA flows as these are equivalent to free cash flows, and then follow the same as calculating SVA.
C) Since SVA is based on non-traditional accounting methods and EVA is based on traditional financial statements, the measures will always be incompatible.
D) Delete adjustments to debt, assets and equity and follow the steps for finding SVA.
E) Add the market value of debt to the NPV of future EVA flows.
Correct Answer:
Verified
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