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Dear sir Hi.
Please help mw with the following questions:ROI may me misleading if we compare the departments ROI with the assets of different ages. This is true but how sir please explain me.
A department with older assets will have a lower value of net assets than a department with newer assets (because the assets will have been depreciated more). If the net assets are lower then the ROI will be higher, but it can therefore be misleading to compare.
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