How do you measure the ROIs

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Question - A company owns two identical apartment buildings. Both buildings were built at the same time.

The first building was acquired by the company ten years ago.

The second building was acquired by the company two years ago at a higher price.

The net book value of the first building will be much lower than the net book value of the second building due to accumulated depreciation and a lower purchase price.

Each building has a different manager.

How do you measure the ROIs so that the manager of the older building does not show a much higher ROI, even if actual job performance is worse in terms of keeping the units rented and containing maintenance costs.

Reference no: EM132941254

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