The Primary Limitation of Using Economic Value Added (EVA®) to Evaluate

The primary limitation of using Economic Value Added (EVA®) to evaluate the financial performance of investment centers is:

A) Complexity of the calculation.
B) Dysfunctional long-term investment decisions that can be motivated by focusing on EVA®.
C) Failure to include a measure of invested capital.
D) Inability to use EVA® to benchmark against competitor organizations.
E) Inability to align managerial incentives with ownership interests.