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The following information was presented by Shower Wonder Enterprises for an asset purchased at the beginning of the previous year. Original cost of the asset
The following information was presented by Shower Wonder Enterprises for an asset purchased at the beginning of the previous year. Original cost of the asset $ 33,000 Useful life of the asset 10 years Cash flow annual operating profit $ 6,700 Salvage value $ 0 What is the return on investment (ROI) assuming Shower Wonder uses (a) the straight-line method for depreciation and (b) average net book values to compute ROI? The following information was presented by Shower Wonder Enterprises for an asset purchased at the beginning of the previous year. Original cost of the asset $ 33,000 Useful life of the asset 10 years Cash flow annual operating profit $ 6,700 Salvage value $ 0 What is the return on investment (ROI) assuming Shower Wonder uses (a) the straight-line method for depreciation and (b) average net book values to compute ROI? A) 21.45% B) 20.30% C) 22.56% D) 12.12%
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