My question is related to section/part d.
How would I know that I should not deduct the annual accumulated depreciation(in this case for 6 months) of the new machine in the capital employed figure, when calculating the ROI?
If it is not specified to calculate ROI as a % of net assets, I should take the gross figure?
It depends whether you are to use the opening or closing net assets.
It is normal to use the opening net assets, and because nothing was said different in this question, that is what has been done.
I’ve asked the question once again because i thought you didn’t see it I apologize for that
No problem, and you are welcome
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