Economic Value Added for New Ventures and Small Business
Abstract
Historically, Economic Value Added (EVA) was a financial tool reserved for large corporations and mature businesses. However, EVA can be particularly useful for small businesses and entrepreneurial endeavors. The value, computed from uncomplicated and available financial data, can direct the tactical and strategic activities of the firm toward value producing projects, help regulate spending, and serve as an exit indicator for firms that may never become successful.
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