The Jones Company purchased assets costing $200,000 which wi…

The Jоnes Cоmpаny purchаsed аssets cоsting $200,000 which will be depreciated over 5 years using straight-line depreciation and no salvage value. Jones also purchased land and other assets, which are not depreciable, at a cost of $200,000. It is estimated that in 5 years, the value of these assets will be unchanged. Assume that annual cash profits are $80,000 and, for return on investment (ROI) calculations, the company uses end-of-year asset values. What is the ROI for each year using net book value? Year 1 Year 2 Year 3 Year 4 A. 11.1% 12.5% 14.3% 16.7% B. 10.0% 10.0% 10.0% 10.0% C. 10.0% 8.9% 7.3% 6.5% D. 11.1% 11.5% 12.5% 12.3%