Answer to Question #66334 in Economics for Jitender

Question #66334
Write down the formula for value added
1
Expert's answer
2017-03-16T12:55:06-0400
Economic value added is the incremental difference in the rate of return over a company's cost of capital.
The formula for economic value added is:
(Net investment) x (Actual return on investment – Percentage cost of capital)

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