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Horner Division has been stagnant over the past five years, neither growing nor contracting in size and profitability. Investments in new property, plant, and equipment
Horner Division has been stagnant over the past five years, neither growing nor contracting in size and profitability. Investments in new property, plant, and equipment have been minimal. Would the division's use of total assets (valued at net book value) when measuring ROl result in (1) using numbers that are consistent with those on the balance sheet and (2) a rising ROl over time? Consistent with Numbers on the Balance Sheet? Yes Yes No No Yes Produce a Rising Return on Investment Over Time? Yes No Yes No Need more information to judge Multiple Choice Choice A Choice B Choice C
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