Residual Income timing.

Hi guys,

I am working through some residual income questions and I notice all the questions here use T-1 as the book values for any calculations.

For example one question asks for the EVA in 2001 and it takes NOPAT 2001 and the WACC calculation uses teh book values from 2000. Is this always normal procedure with RI calculations? T-1?

If not mentioned different use T-1 as default.