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Find which key difference between eva and residual income

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Reference no: EM132707713

Problem 1: Which of the following is a key difference between EVA and residual income?

Select one:

a. Net profit is used to calculate residual income but is irrelevant for EVA.

b. There is no difference between EVA and residual income.

c. EVA has a long term focus, but residual income has a short term focus.

d. The weighted average cost of capital is used to calculate EVA, but not necessarily for residual income.

Reference no: EM132707713

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