... the order of the items shown on the balance sheetdetermined?A company has $2 million of cash and equivalents, $2 million of inventory, $3 million of accounts receivable, $3 million of accountspayable, ... portion of it is charged as a cost of production over each year of themachine’s life. If the $100,000 were taken as an expense in 2005, then profits inthat year would be understated, but profits ... capitalϫAfter-taxpercentagecost of capital¢ EVA ϭNet operatingprofit after taxes1NOPAT2Ϫ Annual dollar cost of capital86Part 2 Fundamental Concepts in Financial Management Market Value Added(MVA)The excess of the...