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Why May EVA Be Considered a Better Measure for Rewarding

Question 14

Multiple Choice

Why may EVA be considered a better measure for rewarding managers than SVA?


A) EVA can be fine-tuned to measure an individual's performance.
B) EVA is not as easily manipulated by managers as SVA.
C) EVA values are more comparable from period-to-period than SVA.
D) EVA does not include estimates of future performance.
E) EVA focuses managers on current profits rather than long-term gains.

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