Similar to RI, but adjustments are made to the accounting measures: - operating profit is AFTER TAX - corrects for potential distortions in economic income created by U.S. GAAP. Also removes managerial conflicts of interest to reject favorable investments.
A) Economic value added (EVA)
B) Return on investment (ROI)
C) Residual income (RI)
D) Return on assets (ROA)

Q&A Education