Question 1
Economic value added (EVA) performance measures
◦ the percentage return generated on the use of assets.
◦ segment margin.
◦ the fair market value of income.
◦ economic profit.
Question 2
The formula to calculate EVA is
◦ Net operating profit - (average capital assets × internal rate of return).
◦ Contribution margin - (invested capital × weighted average cost of capital).
◦ Net operating profit - (invested capital × weighted average cost of capital).
◦ Contribution margin - (average capital assets × internal rate of return).