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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
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: Wheels Assembly ASSETS INCOME Book Value $515,000 $770,000 Current value $550,000 $1,400,000 Book value $130,000 $170,000 Current value $150,000 $180,000 The company is currently using a 13% required rate of return. What are Wheels's and Assembly's return on investment based on current values, respectively?
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
