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Any body know how the EVA is calculated on this question.
Also when calculating the cashflow why is the depreciation 120000$
Many thanks for your help
Jimmy
If you are asking about the EVA approach in general this is thoroughly covered in the notes and lectures. It is important for the exam and there is no shortcut to understanding the technique.
If you have a question about a particular figure or adjustment, then describe the problem specifically.
The depreciation of 120,000 is listed as an expense in the performance reports, about 5 lines up.
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