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A firm opens a new retail store every 2 years and currently operates in 24 different locations. The firm uses return on investment (ROI) to evaluate store performance. The best comparison among stores will be achieved if the firm values long-term assets by

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Answer: b. Current value

Step-by-step explanation:

The stores are opened at different time periods which means that inflation would make comparison between the values of each store quite difficult if book value were to be used.

It would therefore be best to use the current values of the long-term assets as this would take into account various factors such as inflation. This would ensure that the values being used at the time to compare are reflective of the economic situations on ground.

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