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Dear tutor,
I have doubts concerning the capital employed, which should be used when calculating ROCE, ROI, RI and EVA.Could you please tell me if the following statements are correct:
ROCE and ROI – the capital employed is the average amount of that at the beginning and at the end of the period.
RI and EVA – the capital employed is taken at the beginning of the year.ROCE – Just use the balance at end of year.
ROI. RI and EVA is the beginning. He will usually give you these in the question and i he wants you to use the balance at the end of the year he will say so.
I think this is correct.
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