The formula to calculate EVA is Net operating profit - (invested capital x weighted average cost of capital). Contribution margin - (average capital assets × internal rate of return). © Contribution margin – (invested capital × weighted average cost of capital). Net operating profit - (average capital assets × internal rate of return). O O O

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...
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The formula to calculate EVA is
Net operating profit - (invested capital × weighted average cost of capital).
Contribution margin - (average capital assets × internal rate of return).
Contribution margin – (invested capital × weighted average cost of capital).
Net operating profit - (average capital assets × internal rate of return).
O O O O
Transcribed Image Text:The formula to calculate EVA is Net operating profit - (invested capital × weighted average cost of capital). Contribution margin - (average capital assets × internal rate of return). Contribution margin – (invested capital × weighted average cost of capital). Net operating profit - (average capital assets × internal rate of return). O O O O
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