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The following information was presented by User-Friendly Industries Company for an asset purchased at the beginning of the previous year. Original cost of the asset
The following information was presented by User-Friendly Industries Company for an asset purchased at the beginning of the previous year. Original cost of the asset What is the return on investment (ROI) assuming User-Friendly uses (a) the straight-line method for depreciation and (b) beginning-of-year net book values to compute ROI? $23,500 Useful life of the asset 15 years Annual operating profit, including depreciation Salvage value $ 5,400 $ -0- Multiple Choice 7.1%. 23.0%. 24.6% 29.8%
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