alleryStart learning →What is unique to EVA compared with plain residual income?
AAdjustments to NOPAT
BCharge for capital use
CUse of cost of capital
DUse of operating profit
Answer & Solution
Correct answer: A. Adjustments to NOPAT
Residual income and EVA both use a money capital charge, but the adjustments to NOPAT are unique to EVA.
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