When using RI to see whether manager will accept new investment or not, does the RI have to be more than the RI without the new investment? Suppose it is $10000 without investment and with investment RI is $8000, therefore the manager will not accept new investment, correct?
Ask the Tutor ACCA PM
Residual income
Yes, that is correct.
(Have you watched my free lectures on this? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.)
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