In contrast to residual income (RI) , economic value added (EVA®) uses in its calculation:
A) The firm's cost of capital rather than its minimum rate of return.
B) A measure (or estimate) of economic, not accounting, income.
C) A required rate of return in estimating the amount of profit generated.
D) Values determined by using conventional accounting policies (i.e., GAAP) .
E) Accounting, not economic, measures of income and investment.
Correct Answer:
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