Question: If ROI is used to evaluate a manager's performance for a relatively new division, which of the following measures for assets (or investment) will increase
If ROI is used to evaluate a manager's performance for a relatively new division, which of the following measures for assets (or investment) will increase ROI?
a. Gross book value used instead of net book value.
b. Net book value using accelerated rather than straight-line depreciation.
c. Gross book value used instead of replacement cost, if gross book value is higher.
d. Replacement cost used instead of liquidation value, if replacement cost is higher.
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Choice b is correct If a division is relatively new its assets will be new as well ... View full answer
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