Question: Economic value added ( EVA ) does not resolve the suboptimization problem because q , it is based on accounting income while investment decisions are

Economic value added (EVA) does not resolve the suboptimization problem because q,
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
deciding how to make adjustments - such as the appropriate life of R&D - may prove difficult
Economic value added ( EVA ) does not resolve the

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