Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 10

Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its return on investment (ROI) based on both net book value and on gross book value. You are given that profits are $2 million, the net book value (NBV) of operating assets is $10 million, and the gross book value (GBV) of these assets is $40 million. What is ROI based on NBV and based on GBV