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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

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.


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