One division of the Marvin Educational Enterprises has depreciable assets costing $4,400,000. The cash flows from these assets for the past three years have been:

Year		Cash flows
1		$	1,496,000
2		$	1,716,000
3		$	1,870,000

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 gross book value?

	Year 1			Year 2			Year 3
A.	24.0	%		29.0	%		32.5	%
B.	29.0	%		32.0	%		34.0	%
C.	22.0	%		30.5	%		30.0	%
D.	34.0	%		39.0	%		42.5	%