Would evaluating amy with the benchmark be fair

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Reference no: EM13875030

Heartwood Furniture plans to evaluate Amy by comparing NightTime's ROI to the ROI of Stiles Furniture, which operates in a business environment similar to that of NightTime. Both companies have the same capabilities, but Stiles uses a significantly different manufacturing strategy than NightTime.

a. Would evaluating Amy with this benchmark be fair?

b. Would using residual income instead of ROI offer any advantages for Heartwood?

Reference no: EM13875030

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