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Sir in question 4, what is this economic depreciation. And while calculating capital employed for 2013 why have they taken figure of 2012 is it misprint or its correct.
ThanksYou cannot be asked to calculate economic depreciation, but it is the drop in value due to the change in potential earnings. Because you cannot be asked to calculate it, we assume that it is equal to the accounting depreciations.
For capital employed (for EVA) we use the capital employed at the start of the year (end of last year) if we have the information available.So that means if we dont have information then we take it of same year.Am i right.
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