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What Is Residual Income and How Is It Computed? Is

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What is residual income and how is it computed? Is it better for residual income to be high or low?
Residual income (RI) is another alternative return on investment (ROI) that can be used to measure a segment's performance. It is the amount of income earned in excess of a predetermined minimum rate of return on assets.

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The exact formula is as follow...

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