Question
The following information was presented by Alpha Manufacturing Company for an asset purchased the previous year. Original cost of the asset $ 26000 Useful life
| The following information was presented by Alpha Manufacturing Company for an asset purchased the previous year. |
| Original cost of the asset | $ 26000 |
| Useful life of the asset | 10 years |
| Cash flow annual operating profit | $ 6000 |
| Salvage value | $ 0 |
| What is the return on investment (ROI) in year 2 assuming Alpha uses the straight-line method for depreciation and beginning-of-year net book values to compute ROI? |
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Auditing Theory
Authors: Ian Dennis
1st Edition
1138599700, 978-1138599703
