Return on investment is based on the book value of operating assets. However, book value may not be as realistic a measure of the assets’ current value as fair market value or appraised value. What...

Return on investment is based on the book value of operating assets. However, book value may not be as realistic a measure of the assets’ current value as fair market value or appraised value. What effect would using fair market value instead of book value have on the return on investment?