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    Return on investment, residual income, and economic value added.

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    Explain return on investment, residual income, and economic value added metrics. What does each metric explain? When should each be used?

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    Explain return on investment, residual income, and economic value added metrics. What does each metric explain? When should each be used?

    Return on investment:

    Return on investment is the measure of performance and it is calculated by dividing the gain from investment by cost of investment. In case of company, return on investment is calculated by dividing net operating income by total assets (resources employed by the company to generate the net income the company). Return on investment is used when the company has to select one among different projects. The investment project which gives highest return on investment will be selected. Likewise, ...

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