Differences of eva and ri, Strategic Management

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Differences of EVA and RI

EVA uses the replacement not historical accounting cost of assets.
Profit calculated under both methods are different e.g. with EVA the replacement cost of assets would use to calculate a depreciation charge.
EVA capitalises and amortises long-term expenditure that adds value for the future.

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KOTTLER, EIGHT STAGE PROCESS

EIGHT STAGE PROCESS

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