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omarcham

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Active 5 years ago
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  • April 6, 2020 at 1:57 am #566600
    mysteryomarcham
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    Hi
    Kind put me through for this question.

    Is divisional performance :

    A new Co. has non-current assets of $460,000 which will be deprecated to nil on a straight line basis over 10 yrs. Net current assists will consistently be $75000, and annual profit will consistently be $30,000. ROI is measured as return on net assets.

    Required :
    Calculate the Co. ROI in years 2 and 6.
    Please show workings.

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