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Use the graph to find the x- intercept and y- intercept.
Return on Investment
A measure of the profitability and efficiency of an investment, calculated by dividing net profits by the cost of the investment.
Residual Income
Profit remaining after deducting all costs, including the cost of capital, usually used in managerial accounting as a performance measure.
Minimum Required Rate of Return
The lowest rate of return that a potential investment must offer to be considered acceptable, taking into account the investor's cost of capital and risk appetite.
Annual Turnover
The total sales or revenue a company generates in one year.
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