A useful measure used to evaluate the performance of an investment center is investment center residual income.

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Investment center residual income is a commonly used measure to evaluate the performance of an investment center. It represents the amount of income earned by the center over and above the minimum required return on its invested capital. It provides a more accurate picture of the center's profitability as it takes into account both the cost of the invested capital and the operating profits of the center.

A Useful Measure Used to Evaluate the Performance of an Investment