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- 2011-7-11
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- 2013-10-21
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Can someone please explain this to me:
"She considers using NOPAT and EVA to assess managment performance. She believes that increasing invested capital to take advantage of projects with positive net present values inceases both NOPAT and EVA"
Can someone please explain this?
EVA = NOPAT - (Wacc x invested Cap)
So surely increasing invested capital will reduce EVA?
I'm sure there's some fundamental thing I'm missing here but any help would be greatly appreciated. |
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