ROI : Return of Investment (ROI) measures the return from an investment. It shows how well the business is performing. It is usually calculated in percentage form. Residual Income: Residual Income is the income left for a business after the minimum return required from the business is achieved. In other words, residual income is the income over and above the minimum required return. To Calculate: ROI, Residual Income and explain the relationship between the two.

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Chapter 10, Problem 2AE

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ROI: Return of Investment (ROI) measures the return from an investment. It shows how well the business is performing. It is usually calculated in percentage form.

Residual Income: Residual Income is the income left for a business after the minimum return required from the business is achieved. In other words, residual income is the income over and above the minimum required return.

To Calculate: ROI, Residual Income and explain the relationship between the two.

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