All about EVA

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. What is Economic Value Added or EVA?

  2. What is the forecast or planning period?

  3. Future cash flows need to be discounted because of -

  4. The terminal value is -

  5. The mathematical effects of discounting are -

  6. The Sales Growth Rate or SGR is important in driving value because -

  7. The Operating Profit Margin or OPM is important because -

  8. Investment is taken into the valuation calculation through a reduction of cash flows because -

  9. The incremental working and fixed capital investment should most usually be estimated by -

  10. Incremental fixed capital is an adjustment needed -