If a corporate division makes large asset purchases, that would have the effect of lowering ROI.

Name: If a corporate division makes large asset purchases, that would have the effect of lowering ROI.
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Quizplus · Accepted Answer

ROI (return on investment) is calculated by dividing net income by the average value of assets. If a corporate division makes large asset purchases, it will increase the average value of assets, thereby decreasing the ROI.

If a Corporate Division Makes Large Asset Purchases, That Would