Economic Value Added (EVA)
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This paper discusses how Economic Value Added (EVA) is not a new concept in economics and financial theory and is based on the 19th century concept of "economic profit", it has only been widely adopted recently by business firms as an accounting practice. It describes what EVA is and looks at its pros and cons from the point of view of the company adopting the practice and the investors. It also examines how EVA differs from some other emerging accounting practices and the major issues relating to EVA as compared to other commonly used accounting principles. Finally, the possible problems and opportunities that a company adopting EVA principles can face are analyzed.
Cite this Analytical Essay:
Economic Value Added (EVA) (2003, August 07) Retrieved December 12, 2019, from https://www.academon.com/analytical-essay/economic-value-added-eva-29757/
"Economic Value Added (EVA)" 07 August 2003. Web. 12 December. 2019. <https://www.academon.com/analytical-essay/economic-value-added-eva-29757/>