The following information was presented by Shower Wonder Enterprises for an asset purchased at the beginning of the previous year.$$\begin{array} { | l | r | }
\hline \text { Original cost of the asset } & \$ 20,000 \
\hline \text { Useful life of the asset } & 10 \text { years } \
\hline \text { Cashflow annual operating protit } & \$ 4,000 \
\hline \text { Sabage value } & \$ - 0 - \
\hline
\end{array}$$What is the return on investment (ROI)assuming Shower Wonder (a)uses the straight-line method for depreciation and (b)average net book values to compute ROI?
A) 21.1%.
B) 20.0%.
C) 22.2%.
D) 11.76%.

Question

The following information was presented by Shower Wonder Enterprises for an asset purchased at the beginning of the previous year.$$\begin{array} { | l | r | } 
\hline \text { Original cost of the asset } & \$ 20,000 \
\hline \text { Useful life of the asset } & 10 \text { years } \
\hline \text { Cashflow annual operating protit } & \$ 4,000 \
\hline \text { Sabage value } & \$ - 0 - \
\hline
\end{array}$$What is the return on investment (ROI)assuming Shower Wonder (a)uses the straight-line method for depreciation and (b)average net book values to compute ROI? 
A) 21.1%.
B) 20.0%.
C) 22.2%.
D) 11.76%.

Quizplus · Accepted Answer

The Answer of The following information was presented by Shower Wonder Enterprises for an asset purchased at the beginning of the previous year.$$\begin{array} { | l | r | } 
\hline \text { Original cost of the asset } & \$ 20,000 \
\hline \text { Useful life of the asset } & 10 \text { years } \
\hline \text { Cashflow annual operating protit } & \$ 4,000 \
\hline \text { Sabage value } & \$ - 0 - \
\hline
\end{array}$$What is the return on investment (ROI)assuming Shower Wonder (a)uses the straight-line method for depreciation and (b)average net book values to compute ROI? 
A) 21.1%.
B) 20.0%.
C) 22.2%.
D) 11.76%.

The Following Information Was Presented by Shower Wonder Enterprises for an Asset