10 Value Added Approaches

33 Pages Posted: 14 Feb 2006

See all articles by Ignacio Velez-Pareja

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Date Written: February 10, 2006

Abstract

This is a course material from the book Investment Decision Making. For Firm and Project Valuation. The book is originally in Spanish and is untitled as Decisiones de inversión. Para la valoración financiera de proyectos y empresas.

Chapter 10 is devoted to the measurement of added value. We critically study EVA ® and economic profit. We show that when properly used, the value added methods are proper ways top measure the firm value. We present the idea of Investment Recovery and Value Added IRVA. We study the assumptions and limitations of those methods.

Note: Downloadable document is in Spanish.

Keywords: Economic value added, EVA, economic profit

JEL Classification: G31

Suggested Citation

Velez-Pareja, Ignacio, 10 Value Added Approaches (February 10, 2006). Available at SSRN: https://ssrn.com/abstract=882882 or http://dx.doi.org/10.2139/ssrn.882882

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

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