One division of the Marvin Educational Enterprises has depreciable assets costing $5,300,000. The cash flows from these assets for the past three years have been:

Year		Cash flows
1		$	1,431,000
2		$	1,696,000
3		$	1,934,500

The current (i.e., replacement) costs of these assets were expected to increase 20% each year. Marvin used the straight-line depreciation method; the estimated useful life is 10-years with no salvage value. For return on investment (ROI) calculations, Marvin uses end-of-year balances.

What is the ROI using historical cost and net book value?

	Year 1			Year 2			Year 3
A.	41.1	%		52.5	%		66.4	%
B.	18.9	%		27.5	%		37.9	%
C.	30.0	%		40.0	%		52.1	%
D.	27.0	%		32.0	%		36.5	%
Choose: Option A Option B Option C Option D