An economic value added method is specific type of method to calculate

A. net income

B. nominal income

C. residual income

D. residual investment

Answer: Option C

Solution(By Examveda Team)

An economic value added method is specific type of method to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company's management team evaluates the income generated relative to the company's minimum required return.