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In Jun 2011 question 1 required calculation of EVA, y the suggested answer didn’t include the depreciation?? It should be added in to get the NOPAT..Can u please explain ??Thank you..
NOPAT should include a deduction for economic depreciation. Usually questions state that the depreciation charged in the accounts is the same as the economic depreciation so that no net adjustment is needed. The question didn’t state that here, but it’s the only assumption you can make as economic depreciation was not given.
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i have a question about december 2007 exam question part b(i)
i m confused about capital employed figure..question asked to calculate EVA for 2006 and 2007 but in answer examiner took capital employed figures of 2005 and 2006. why this is so can u plz explain???
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