RIForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › RIThis topic has 2 replies, 2 voices, and was last updated 2 years ago by meeruraj.Viewing 3 posts - 1 through 3 (of 3 total)AuthorPosts September 1, 2022 at 7:15 am #664797 meerurajMemberTopics: 29Replies: 24☆☆It says that RI will discourage investment as NBV of assets fall overtime and RI increases could you explain this September 1, 2022 at 1:41 pm #664838 Ken GarrettKeymasterTopics: 10Replies: 10551☆☆☆☆☆To get RI you deduct an amount equal to Interest rate x capital employed from profits.The higher the capital employed, the larger the deduction and the smaller the RI.If you change and old asset (low NBV) for a new one (high NBV), capital employed rises and RI decreases. September 2, 2022 at 3:43 am #664904 meerurajMemberTopics: 29Replies: 24☆☆thank youAuthorPostsViewing 3 posts - 1 through 3 (of 3 total)The topic ‘RI’ is closed to new replies.