Home Decor Inc

question 63

Multiple Choice

Home Decor Inc., manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2015:

The company is currently using a 15% required rate of return.
-What are Bleach's and Cleanser's return on investment based on current values,respectively?

• A) 0.22; 0.6749
• B) 0.42; 0.5219
• C) 0.50; 0.3286
• D) 0.67; 0.2286