Three Years Ago,one Division of the Calsone Enterprise Company Purchased

Essay

Three years ago,one division of the Calsone Enterprise Company purchased depreciable assets costing $2,000,000.The cash flows from these assets for the past three years have been:
Calsone used the straight-line depreciation method;the estimated useful life is 10-years with no salvage value.For return on investment (ROI)calculations,Calsone uses end-of-year balances. $$\begin{array} { | l | r | } \hline \text { Year } & \text { Cash Flows } \\\hline 1 & \$ 600,000 \\\hline 2 & 700,000 \\\hline 3 & 810,000 \\\hline\end{array}$$ Required:
a.What was the ROI for each year using historical cost and gross book value?
b.What was the ROI for each year using historical cost and net book value?