An investment opportunity with a residual income that equals or exceeds the company's required rate of return should be accepted.

Name: An investment opportunity with a residual income that equals or exceeds the company's required rate of return should be accepted.
Brand: Quizplus
Rating: 5.0 (48 reviews)

Question

Quizplus · Accepted Answer

Residual income is the income generated above the company's required rate of return. If residual income equals the required rate, it means the investment is just meeting the minimum threshold, not exceeding it.

An Investment Opportunity with a Residual Income That Equals or Exceeds