Asked by
Jeremy Ramirez
on Dec 05, 2024
Verified
Which of the following statements is/are false?
i. Return on investment encourages managers to take a long-term view of corporate performance.
ii. Return on investment may encourage managers to defer the replacement of worn assets.
iii. Return on investment may encourage managers to increase expenditure on research and development.
A) i and ii
B) ii and iii
C) i and iii
D) All of the given answers
Return On Investment
A financial metric used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of investment.
Deferred Replacement
A decision to postpone the replacement of assets, often to manage costs or due to budget constraints, which may affect operational efficiency.
- Absorb the essence of return on investment (ROI) including what influences it.
- Recognize the implications of investment decisions on financial performance indicators.
Verified Answer
TR
Learning Objectives
- Absorb the essence of return on investment (ROI) including what influences it.
- Recognize the implications of investment decisions on financial performance indicators.