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Question 2. A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below, B) Compare the effect of decrease in revenues of 10% on the rate of return for method II (calculate the % of change in ROI). Method I Method II Initial cost (OR) C1 C2 Annual revenues (OR/yr) R R O&M annual cost ((OR/yr) 15200 16500 Salvage value (OR) 2000 1500 Useful life (Years) 8. 10

Question 2. A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below, B) Compare the effect of decrease in revenues of 10% on the rate of return for method II (calculate the % of change in ROI). Method I Method II Initial cost (OR) C1 C2 Annual revenues (OR/yr) R R O&M annual cost ((OR/yr) 15200 16500 Salvage value (OR) 2000 1500 Useful life (Years) 8. 10

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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C1 C2 R to 22800 18000 22100
Transcribed Image Text:C1 C2 R to 22800 18000 22100
Question 2. A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below, B) Compare the effect of decrease in revenues of 10% on the rate of return for method |I (calculate the % of change in ROI). Method I Method II Initial cost (OR) C1 C2 Annual revenues (OR/yr) O&M annual cost ((OR/yr) 15200 16500 Salvage value (OR) 2000 1500 Useful life (Years) 8. 10
Transcribed Image Text:Question 2. A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below, B) Compare the effect of decrease in revenues of 10% on the rate of return for method |I (calculate the % of change in ROI). Method I Method II Initial cost (OR) C1 C2 Annual revenues (OR/yr) O&M annual cost ((OR/yr) 15200 16500 Salvage value (OR) 2000 1500 Useful life (Years) 8. 10
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