Answer Happy

in determining the dollar amount to use for divisional assets in the return on investment (ROI) calculation, companies will generally use either net book value or gross cost of the assets. Which of the following is not an argument for the use of net book value rather than gross book value? Multiple Choice. It is consistent with how assets are reported on the balance sheet It eliminates the depreciation method as a factor in ROI calculations It encourages the replacement of old, wom-out equipment It will result in a decrease of ROI each year