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Calculate EVA for 2014.

Calculate EVA for 2014. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures and amortizes them over three years, including the year they are incurred. For external reporting purposes, research and development is expensed in the year incurred, as indicated in the income statements above. (Round answer to the nearest whole dollar, e.g. 5,725.)

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Top Answer

The formula for Economic Value Added is:                              (Net Investment) x (Actual... View the full answer

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Other Answers

Year 2014 Economic Value added (EVA) = Net operating profit after Tax - Cost of capital employed                  ... View the full answer

1 comment
  • Please rate my answer as best as it carries proper formula of EVA with proper explanation of each part of the formula. Thanks !
    • shardanilesh70
    • Apr 17, 2016 at 5:58am

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