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Which of the following statements is true? Using residual income to evaluate managers will motivate them to pursue investments that increase their return on investment

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Which of the following statements is true? Using residual income to evaluate managers will motivate them to pursue investments that increase their return on investment (ROI) even though they do not earn enough net operating income to exceed the minimum required return on operating assets. Using residual income to evaluate managers will motivate them to pursue investments that increase their residual income even if it lowers their return on investment (ROI). Using residual income to evaluate managers will motivate them to pursue investments that increase their return on investment (ROI) even if it lowers their residual income. Using residual income to evaluate managers will motivate them to pursue investments that increase their residual income only when it also increases their return on investment (ROI)

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