A primary limitation of return on investment ROI as a performance-evaluation metric

Question

A primary limitation of return on investment (ROI) as a performance-evaluation metric for investment centers is that ROI:

A. Is a long-term, not short-term, performance indicator.

B. Understates the level of "investment" for organizations operating in the so-called knowledge-based economy.

C. Excludes the level of investment from the performance metric.

D. Cannot handle current-value estimates of assets.

E. Is not a relative performance indicator.

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