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Problem 12-14 Accounting measures of performance The following tables provide book information on the Nodhead project. Year 1 2 3 4 5 6 Book income
Problem 12-14 Accounting measures of performance
The following tables provide book information on the Nodhead project.
Year | ||||||
1 | 2 | 3 | 4 | 5 | 6 | |
Book income for store | ||||||
1 | 66.10 | 33.90 | 83.90 | 131.90 | 131.90 | 131.90 |
2 | 73.37 | 37.63 | 93.13 | 146.41 | 146.41 | |
3 | 81.44 | 41.77 | 103.37 | 162.51 | ||
4 | 90.40 | 46.36 | 114.74 | |||
5 | 100.34 | 51.46 | ||||
6 | 111.38 | |||||
Total book income | 66.10 | 39.47 | 40.09 | 176.40 | 327.70 | 495.64 |
Book value for store | ||||||
1 | 1,002.21 | 835.18 | 668.14 | 501.10 | 334.06 | 167.02 |
2 | 1,112.45 | 927.04 | 741.63 | 556.22 | 370.80 | |
3 | 1,234.82 | 1,029.02 | 823.21 | 617.40 | ||
4 | 1,370.65 | 1,142.21 | 913.76 | |||
5 | 1,521.43 | 1,267.85 | ||||
6 | 1,688.78 | |||||
Total book value | 1,002.21 | 1,947.63 | 2,830.00 | 3,642.40 | 4,377.13 | 5,025.61 |
Assume a steady-state growth rate of 11% per year. Calculate the book ROI. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 3 decimal places.)
Book ROI for Year 1 to 6?
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