Duckworth should implement EVA application guidelines because the system would promote efficient capital allocation and create wealth to shareowners. As mentioned above, companies performing at inadequate levels adopted the EVA system and made significant changes in their revenues, operating profits, earnings per share and the like. As Bennet Stewart, creator of the EVA System, he says "self motivated, self adjusting corporate governance system link capital budgeting and strategic investment decisions to the compensation systems:" (Duckworth Industries). We as a group feel that the same successes can be applied to Duckworth Industries Inc.
