Answer the Following Questions Using the Information Below:
Carriage Incorporated

question 99

Multiple Choice

Answer the following questions using the information below:
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 2015:
$$\begin{array} { | l | r | r | r | r | } \hline & { \text { ASSETS } } && { \text { INCOME } } \\\hline & \text { Book value } & \text { Current value } & \text { Book value } & \text { Current value } \\\hline \text { Wheels } & \$ 485,000 & \$ 550,000 & \$ 120,000 & \$ 140,000 \\\hline \text { Assembly } & \$ 750,000 & \$ 1,200,000 & \$ 160,000 & \$ 172,500 \\\hline\end{array}$$ The company is currently using a 12% required rate of return.
-What are Wheels's and Assembly's return on investment based on current values,respectively?

• A) 0.21; 0.25
• B) 0.25; 0.21
• C) 0.14; 0.25
• D) 0.25; 0.14

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Definitions:

Electrical Impulses

Rapid changes in electric potential that travel along nerves or muscle fibers to transmit signals.

Sensory Neuron

Sensory neurons are nerve cells that transmit sensory information (e.g., touch, pain) from the body to the central nervous system for processing.

Effector

An organ or cell that acts in response to a stimulus, often leading to a physiological response in the body.

Reaction Time

The duration between the presentation of a stimulus and the initiation of the muscular response to that stimulus.