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Author Question: Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and ... (Read 88 times)

hbsimmons88

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Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. 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
Wheels$510,000$570,000$120,000$155,000
Assembly$760,000$1,200,000$165,000$172,000
The company is currently using a 14% required rate of return.

What are Wheels's and Assembly's return on investment based on current values, respectively?
◦ 14%; 27%
◦ 24%; 22%
◦ 22%; 24%
◦ 27%; 14%


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Marked as best answer by hbsimmons88 on Mar 6, 2021

Sarahjh

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hbsimmons88

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


kusterl

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Reply 3 on: Yesterday
Gracias!

 

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