Assume the following facts for the Oracle Division:

• Operating profit before depreciation (all in cash flows at end of year): Year 1, $100 and increasing by 20% each year
• Annual rate of price changes is 20%.
• Asset cost at beginning of Year 1: $500 (this is the only asset)
• Asset is depreciated by the straight line method at the rate of 10% per year (no salvage value).

Assume that ROI computation is based on the end-of-year asset value and the asset base is gross book value in conjunction with historical cost. The ROI figures over the years of the assets life will:

dispose of assets early in a year and do not acquire assets for years

	A.	increase first and then decrease
	B.	decrease
	C.	increase
	D.	stay the same
	E.	decrease first and then increase