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Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: A) the problems associated with measuring
Residual income is a better measure for performance evaluation of an investment center manager than return on investment because: A) the problems associated with measuring the asset base are eliminated. B) desirable investment decisions will not be rejected by divisions that already have a high ROI. C) only the gross book value of assets needs to be calculated. D) returns do not increase as assets are depreciated
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