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Hi, 10 JHK Coffee Machines Co – Kaplan Kit. The calculation of EVA does NOT include depreciation.
I am quite confused if it is the economic depreciation, so deduct and if it is the accounting depreciation, so add back. There are no information of economic or accounting depreciation and why depreciation is NOT include the calculation of EVA.
Thanks !
If there is no information about depreciation there is nothing you can do about it except to assume that
ECONOMIC DEPRECIATION = ACCOUNTING DEPRECIATION
so that the net adjustment is zero.
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