Page 7 - PowerPoint Presentation
P. 7
PERFORMANCE MEASUREMENT
RI example (cont)
Net operating assets R400 000
Net operating income R80 000
Minimum required rate of return 15%
Calculate the current RI:
R80 000 – (R400 000 x 15%) = + 20 000
Therefore currently the company is performing well as they
have generated residual income of R20 000.
7
