Transfer Pricing BPP Activity 3

Forecast sales for the year are:

Vittorio
Profits: 90,000
investment: 5,00,000

Dugaldo
profits: 1,35,000
Investment: 7,50,000

Vittorio is considering investing in a labour saving equipemt which will cost 8,000
this will generate an increase in profit net profit of 1,200 each year for 10 years, after which the equipement is expected to have no resale value. Vittorio uses straight line depreciation

Dugaldo has been offered a replacement over for one of his existing ones. the existing one is written down in the books to an NBV of 2,000 and is inefficient.
total costs are 2,50,000 including manitanence and depreciation.

the replacement will cost 75,000, will have no downtime and negligible maintanence costs in the early years. depreciation will be 20% straigh line.

each oven is estimated to generate 60,000 per year before these costs are considered.
the directors demand a minimum ROCE of 12%

To calculate ROI of new oven the book answer is:
60,000-15,000/75,000 * 100 is given as 60%
when we depreciate the asset the capital employed reduces as well hence it will be (75000-15000). why isnt that accounted in the above case?