Question

In order to prevent ROI from growing automatically over time, a company should compute use the Blank______ of the asset in the computation.

Multiple choice question.

gross cost


net book value

Answer 1

To prevent ROI from growing automatically over time, a company should compute the **net book value** of the asset in the computation. The net book value reflects the asset's current value after accounting for depreciation, rather than its original cost, which helps in providing a more accurate measure of return on investment over time.