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RI and investment centers

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › RI and investment centers

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  • February 23, 2022 at 8:09 am #649167
    Avatarcaramellatte
    Member
    • Topics: 6
    • Replies: 4
    • ☆

    Can someone please explain why the answer is C ? Thank you.

    A company wants to encourage an investment centre to make new investments. Performance measurement using which of the following KPI’s would achieve this?

    A. ROI
    B. ROCE
    C. RI
    D. IRR

    February 23, 2022 at 11:52 am #649199
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    Because, as I explain in my free lectures, this would make sure that they would also make new investments when they gave a return higher than that required by the company.

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