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Answer the following question(s) using the information below:
Carriage Ltd.manufactures baby 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 the year just ended:
The company is currently using a 12% required rate of return.
-What are Wheels and Assembly Divisions' return on investment based on book values, respectively?
Fixed Period
A specified duration of time during which certain conditions or rules are applied, often in financial contracts or investment terms.
Growing Annual Cash Flows
Refers to the increment in cash inflows that a business experiences annually, often attributed to factors like increased sales or cost-efficiency measures.
Growing Perpetuity
A stream of cash flows that continue indefinitely and grow at a constant rate.
Constant Stream
A series of uninterrupted and consistent flows or payments, often used in the context of financial streams or income over a specific period.
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