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The Advantage of Residual Income as a Measure of Investment

Question 60

Multiple Choice

The advantage of residual income as a measure of investment centre performance is:


A) it can be used to compare investment centres of different sizes.
B) it focuses on long-term performance.
C) it includes the organisation's minimum required rate of return.
D) it can be used to compare investment centres of different sizes AND it includes the organisation's minimum required rate of return.

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