C02 · Lesson 17 of 22 · 15 min · 5 hands-on tasks
ROI, Residual Income and EVA
Larkfield pays its division heads on return on investment. So the Bikes division turns down a robot that earns 15%, and E-Cargo wants a tester that earns 8%. Both are wrong for Larkfield, and both are right for their bonuses. Measure the divisions with ROI, residual income and EVA, and see why the measure changes the decision.
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