- This topic has 1 reply, 2 voices, and was last updated 12 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
How was your exam? Comments & Instant poll >>
OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>
Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › How to understand ”EVA can be manipulated by choosing project with low initial cost’
“EVA can be manipulated by choosing project with low initial cost to boost short-term boost to value measure in the same way as profit measures.”
Hi men
EVA = Nopa – CE x WacC in which Nopa we dont adjust for depreciation expense because it equal to economic depreciation. Therefore, low cost mean low economic dep and Nopa will increase meanwhile economic depreciation is very subjective and hard to define.
peace