Measure for performance evaluation of an investment

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Reference no: EM131208434

Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: (CMA adapted)

A. the problems associated with measuring the asset base are eliminated.

B. desirable investment decisions will not be neglected by high-return divisions.

C. only the gross book value of assets needs to be calculated.

D. the arguments about the implicit cost of interest are eliminated.

Reference no: EM131208434

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