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Why do some companies prefer the use of residual income over return on investment in decision making? a. The concept. b. ROI can motivate managers

Why do some companies prefer the use of residual income over return on investment in decision making?

a.

The concept.
b.

ROI can motivate managers to make investment decisions that are not necessarily in the companys best interest.
c.

The calculations for economic profit are easier.
d.

The data needed to calculate return on investment are not always available.

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