Multiple Choice
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2018:
ASSETSINCOME
The company is currently using a 12% required rate of return.
What are Wheels's and Assembly's return on investment based on book values, respectively?
A) 27%; 12%
B) 27%; 21%
C) 12%; 27%
D) 21%; 27%
Correct Answer:
Verified
Correct Answer:
Verified
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