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Which is a key difference between eva and residual income

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Reference no: EM132669225

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

Select one:

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

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

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

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

 

Reference no: EM132669225

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