Answer the Following Question(s)using the Information Below

question 153

Multiple Choice

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'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; 0.29
• D)0.29; 0.14
• E)0.33; 0.23

---

Definitions:

Down Payment

An initial payment made when purchasing an item on credit, typically a percentage of the purchase price.

Savings

Money set aside from income for future use, typically held in secure or low-risk savings accounts or investment products to preserve or grow wealth.

Frequency of Compounding

The number of times interest is added to the principal balance of an investment or loan per time period, affecting the total interest earned or paid.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth.