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In Contrast to Residual Income (RI),economic Value Added (EVA \rarr )Uses:
A)The Firm's Cost of Capital Rather Than Its Minimum

Question 18

Multiple Choice

In contrast to residual income (RI) ,economic value added (EVA \rarr ) uses:


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.

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