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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:
 ASSETS  INCOME  Book value  Current value  Book value  Current value  Wheels $485,000$550,000$120,000$140,000 Assembly $750,000$1,200,000$160,000$172,500\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?

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Definitions:

Social Psychologist

A scientist who studies how individuals think, influence, and relate to each other in social contexts.

Perceived Incompatibility

The belief or impression that two or more factors cannot coexist harmoniously or be true at the same time.

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A disagreement, struggle, or clash between opposing parties resulting from differing needs, desires, or views.

Conflict

A situation or process where there is a clash of interests, values, actions, views, or directions.

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