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Why might a company use eva as a measure of its performance

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Reference no: EM131131940

Why might a company use EVA as a measure of its performance in addition to the standard accounting measures?

Answering the question, "Does the company use investors' money wisely?" is one of the financial manager's thief responsibilities and greatest challenges. At many firms-from Fortune 500 companies and investment firms to community hospitals- economic value added (EVA®) is the measurement tool of choice for making investment decisions, measuring overall financial performance, and motivating management.

Reference no: EM131131940

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