What is the relationship between eva and economic profit

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Reference no: EM131288918

Fortune Magazine published a 1998 interview with Peter Drucker ("Peter Drucker Takes the Long View: The Original Management Guru shares his vision of the future with Fortune's Brent Schlender")
where the following appeared (money.cnn.com/magazines/fortune/ fortune archive/1998/09/28/248706/index.htm):
there is no profit unless you earn the cost of capital. Alfred Marshall said that in 1896, Peter Drucker said that in 1954 and in 1973, and now EVA (economic value added) has systematized this idea, thank God. a. What is EVA and how does it take i

a. What is EVA and how does it take into account the cost of capital?

b. What is the relationship between EVA and economic profit?

Reference no: EM131288918

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