Start learning →

What does the capital charge in EVA represent?

AReturn investors need
BAnnual depreciation
CInterest actually paid
DTax payable now
Answer & Solution
Correct answer: A. Return investors need
It is the return required to compensate investors for the risk of the capital invested.
Practise this question with Quill — CA Final →

Keep practising Divisional Transfer Pricing

Browse all Divisional Transfer Pricing questions for CA Final, or explore more Cost and Management Accounting topics.

Start a Divisional Transfer Pricing lesson →
Related questions