Net Book Value Produces a Misleading Increase in Return on Investment

question 46

Multiple Choice

Net book value produces a misleading increase in return on investment because:

• A) investment centres with old assets will show a higher return on investment than centres with new assets.
• B) investment centres with old assets will show a lower return on investment than investment centres with new assets.
• C) investment centres with old assets will show an equal return on investment centres with new assets.
• D) book value reflects changing market values.

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Definitions:

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a set of recommendations or instructions designed to advise or guide actions in specific situations.

National Institutes of Health

A part of the U.S. Department of Health and Human Services and the primary agency of the United States government responsible for biomedical and public health research.

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A controlled environment where scientific research, experiments, and measurement are conducted by specialists using specific equipment and techniques.

Cholera

An infectious disease causing severe diarrhea and dehydration, usually spread through contaminated water.