What are wheels and assemblys return on investment


Problem

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 2020:

Wheels

Assemblv

ASSETS

Book Value Current value

$500.000
$580.000
$800,000
$1,300.000

INCOME

Book value Current value

$150.000
$150.000
$170.000
$190.000

The company is currently using a 14% required rate of return.

What are Wheels' and Assembly's return on investment based on current values, respectively?

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Cost Accounting: What are wheels and assemblys return on investment
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