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ROI and RI

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › ROI and RI

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
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  • June 20, 2016 at 12:08 pm #323566
    Avatarsxhawty
    Member
    • Topics: 56
    • Replies: 25
    • ☆☆

    which of these are a feature of ROI or RI, or both..

    1. Facilitate the comparison of performance of business units in difference size
    2. ensure that managers will select investment projects with positive NPV
    3. provide a relative measure of investment performance
    4. based on profit rather than cash flow

    Im sure that both of ROI and RI provides a relative measure of investment performance, but im unsure with 1,3 and 4 if it’s a feature of ROI, RI or both

    June 20, 2016 at 4:26 pm #323624
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    1 is a feature of ROI, but not of RI

    2 is a feature more of RI but not of ROI

    3 and 4 are features of both

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