ROI and residual income are tools used to evaluate managerial performance in investment centers.

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Both ROI and residual income are commonly used metrics for evaluating the performance of investment centers and their managers. ROI (Return on Investment) measures the amount of return generated by an investment in relation to the amount of resources invested, while residual income measures the amount of income generated by an investment center beyond what is required to earn a minimum rate of return. Both metrics are used to assess the efficiency and effectiveness of managers in using resources to generate profits.

ROI and Residual Income Are Tools Used to Evaluate Managerial