Just because a project's residual income is positive,that does not mean that it is earning a return in excess of the corporate minimum.

Name: Just because a project's residual income is positive,that does not mean that it is earning a return in excess of the corporate minimum.
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Residual income is calculated as the net income minus the equity charge (minimum required return on equity). A positive residual income indicates that the project is earning more than the corporate minimum required return.

Just Because a Project's Residual Income Is Positive,that Does Not