The Following Information Was Presented by User-Friendly Industries Company for an Asset

Multiple Choice

The following information was presented by User-Friendly Industries Company for an asset purchased at the beginning of the previous year.
$$\begin{array} { l c } \text { Original cost of the asset } & \$ 20,000 \\\text { Useful life of the asset } & 10 \text { years } \\\text { Annual operating profit, including depreciation } & \$ 4,000 \\\text { Salvage value } &\$ - 0 -\end{array}$$
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?

A) 11.1%.
B) 20.0%.
C) 22.2%.
D) 25.0%.