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PERFORMANCE MEASUREMENT




            ROI - example








            Net operating assets                                                    R400 000


            Net operating income                                                    R80 000



            Minimum required rate of return                                         15%







            Calculate the current ROI:


            R80 000 / R400 000 = 20%







            Therefore currently the company is performing well as they

            have generated a return in excess of 15%.





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