EVA

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July 9, 2020 at 8:58 am #576409
gontlentshole74
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In the EVA calculation is economic depreciation supposed to be deducted from replacement cost of assets as well?
July 18, 2020 at 4:17 pm #577325
Cath
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Hi there! Thanks for your question.

Yes definitely economic depreciation reflects the market value change of the assets so we deduct from NOPAT profits and this should be reflected in non-current assets on the capital employed side too

Many Thanks
Cath
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