i am having problem understanding treatment of non cash items in calculation of nopat for eva, what should be the treatment.
Data
Sales revenue 700
Less:
Cost of sales (200)
Goodwill written off (50)
R & D expenditure (80)
Advertisement expenditure (20)
depreciation (60)
interest (10)
profit before tax after interest 280
tax (30%) (84)
Net profit 196
i am confused on the adjustments of the nopat for eva calculation
Ask the Tutor ACCA APM
EVA CALCULATION
7y ago#1Look ag P83 of our notes, where all the adjustments are explained with examples. Then ask about specific queries you still have.
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