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

question 64

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%.

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Definitions:

Employee Content

Materials or messages created by employees for an organization, which may include social media posts, blogs, videos, and other forms of content contributing to the company's communication efforts.

Humanize

means to make something more relatable or understandable by attributing human characteristics, emotions, or experiences, often used in storytelling, branding, or campaigns to create connections with the audience.

Credibility

The quality of being believable or trustworthy, critical for individuals, organizations, and information sources in gaining and maintaining public confidence.

Trustworthiness

Refers to the ability of an individual or organization to be reliable, honest, and credible in their actions.