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Author Question: Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and ... (Read 404 times)

karateprodigy

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Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2018:

 ASSETSINCOME
Book ValueCurrent valueBook valueCurrent value
Bleach$300,000$315,000$130,000$170,000
Cleanser$420,000$365,000$120,000$130,000
The company is currently using a 15% required rate of return.

What are Bleach's and Cleanser's return on investment based on current values, respectively?
◦ 43%; 29%
◦ 29%; 43%
◦ 54%; 36%
◦ 36%; 54%


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Marked as best answer by karateprodigy on Mar 6, 2021

leannegxo

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