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I have two questions:
Question 1) Are both of these article still relevant for the exam in december 2012?
Article 1:
Question 2) Further more in an article on Economic Value Added
On page number 58 in the solution of Example 1. How did the steve weaver had calculated the following values.
IFCI (0.02) (0.02) (0.04) (0.03) (0.01) 0
IWCI (0.08) (0.05) (0.09) (0.06) (0.03) 0Thanks so much.
Yes – both articles are still relevant.
ICFI is given as a percentage of the movement in sales from one period to the next.
So for year 1, IFCI is: 2% x (10.80 – 10.0) = 0.02
For year 2: 3% x (11.34 – 10.80) = 0.02
and so on.IWCI is calculated in exactly the same way, but using the different percentages.
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