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RI and investment centers

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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February 23, 2022 at 8:09 am #649167
caramellatte
Member
- Topics: 6
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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
John Moffat
Keymaster
- Topics: 57
- Replies: 54702
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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