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do we include divestment when calculate operating investment?

do we include divestment when calculate operating investment?

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No. While calculating the operating investment we only take into account the investment that we made to improve the performance of various operations with in the company. It can be assets purchased, hiring of qualified persons or major repairs and renewal of existing infrastructure. Divestment on the other hand is selling of investment or assets. Of course when planning for operational improvement, divestment strategies are considered by the experts, but the proceeds from divestment will not have any effect while calculating Operating investment.

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