When a manager accepts a project because the net operating income from the investment exceeds the minimum acceptable profit based on the required rate of return, the investment was evaluated based on residual income.
Residual income is the amount of money an individual or business has left after paying all expenses. A company's residual income is the capital left over after they complete all their financial obligations, such as the cost of raw materials and utilities. Overall, the more residual income you have, the more financial freedom you have. Residual income refers to the calculation of a company's financial outcomes to measure operating performance.
Learn more about the residual income here:
https://brainly.com/question/29577443
#SPJ4
