Question
Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its return on investment (ROI) based on both net book value (NBV)
Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its return on investment (ROI) based on both net book value (NBV) and gross book value (GBV). Financial data for the company show that profits are $2.44 million, the NBV of operating assets is $9.40 million, and the GBV of these assets is $48.88 million. What is ROI based on NBV and based on GBV?
| ROI based on NBV | % | |
| ROI based on GBV | % |
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
