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beneficial effects of this advertising will last 4 years. Read the requirements. Requirements 1. Calculate residual income, assuming Doorharmony defines investment as total assets. 2.
beneficial effects of this advertising will last 4 years. Read the requirements. Requirements 1. Calculate residual income, assuming Doorharmony defines investment as total assets. 2. Calculate EVA for the year. Adjust both the year-end assets and operating income for advertising assuming that for the purposes of economic value added the advertising is capitalized and amortized on a straight-line basis over 4 years. 3. Discuss the difference between the outcomes of requirements 1 and 2 . Which measure would you recommend, and why
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