Question: Economic value added ( EVA ) does not resolve the suboptimization problem because deciding how to make adjustments - such as the appropriate life of

Economic value added (EVA) does not resolve the suboptimization problem because
deciding how to make adjustments - such as the appropriate life of R&D - may prove difficult
it is based on accounting income while investment decisions are based on the present value of cash flows
managers may have an incentive not to invest in a project that benefits the organization as a whole
Economic value added ( EVA ) does not resolve the

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