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Examveda

Rupee amount for required return of investment is subtracted from income to calculate

A. net income

B. after tax income

C. residual income

D. operating income

Answer: Option C

Solution(By Examveda Team)

Rupee amount for required return of investment is subtracted from income to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company's management team evaluates the income generated relative to the company's minimum required return.

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