Question 2 (20 points) Which of the following statements is CORRECT? Actions that increase reported...
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Question 2 (20 points) Which of the following statements is CORRECT? Actions that increase reported net income will always increase cash flow. One way to increase EVA is to achieve the same level of operating income and with total invested capital obtained at a lower cost of capital. One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free. One way to increase EVA is to generate the same level of operating income and in the meanwhile with more total invested capital
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