A company owns two identical apartment buildings.

• Both buildings were built at the same time.
• The first building was acquired by the company ten years ago.
• The second building was acquired by the company two years ago at a higher price.
• The net book value of the first building will be much lower than the net book value of the second building due to accumulated depreciation and a lower purchase price.
• Each building has a different manager.

For your post, prepare 3–4 paragraphs about managing these properties. Discuss how to measure the ROIs so that the manager of the older building does not show a much higher ROI, even if actual job performance is worse in terms of keeping the units rented and containing maintenance costs.

Answer rating: 100% (QA)

To measure the ROIs in a way that accounts for the differences in purchase price and accumulated dep... View the full answer