Hi
Please can someone let me know why I am taking depreciation from the divisional profit $850000
I had managed to get the mid year capital employed $2800000
Many thanks
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ROI, BPP Revision pg 101 Q 297
4y ago#1We always use the accounting profit (which is after depreciation) when calculating the ROI.
The question says that the profits stated are before depreciation and so we need to subtract the depreciation.
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