One division of the Marvin Educational Enterprises has depreciable assets costing $6,000,000. The cash flows from these assets for the past three years have been:

Year		Cash flows
1		$	2,040,000
2		$	2,340,000
3		$	2,490,000

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 current costs and gross book value?

	Year 1			Year 2			Year 3
A.	28.3	%		27.1	%		24.0	%
B.	29.4	%		25.6	%		24.1	%
C.	22.0	%		24.6	%		24.2	%
D.	18.3	%		17.1	%		14.0	%

Option A

Option B

Option C

Option D