Question: can anyone help me solve this problem? (pls show steps so i can learn how to do it) ework (Chapter 14) Saved Help S The

can anyone help me solve this problem? (pls show steps so i can learn how to do it)  can anyone help me solve this problem? (pls show steps so
i can learn how to do it) ework (Chapter 14) Saved Help
S The Ste Marie Division of Pacific Media Corporation just started operations.

ework (Chapter 14) Saved Help S The Ste Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $35 million and having a four-year expected life after which the assets can be salvaged for $7 million. In addition, the division has $35 million in assets that are not depreciable After four years, the division will have $35 million available from these nondepreciable assets. This means that the division has invested $70 million in assets with a salvage value of $42 million Annual depreciation is $7 million Annual operating cash flows are $25 million. In computing ROI, this division uses end-of-year asset values in the denominator Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Assume that all cash flows increase 10 percent at the end of each year. This has the following effect on the assets' replacement cost and annual cash flows Replacement cost Annual Cash flow $70,000,000 x 1.1 - $77,000,000 $ 25,000,000 X 1.1 $27,500,000 $77,000,000 X 1.1 - $84,700,000 $ 27,500,000 x 1.1 $30,250,000 Etc. End of Year 1 2 Etc. 4 Depreciation is as follows Year 1 2 For the Year $ 7,700,000 8, 420,000 9, 117.000 10,248,700 "Accumulated $7,700,000 (-10% $77,000,000) 15,940,000 (-20% * 34,700,000) 27,951,000 40,994,800 4 Note that "accumulated" depreciation is 10 percent of the gross book value of depreciable assets after one year 20 percent after two years, and so forth Required: a. & b. Compute ROI using historical cost, net book value and gross book value RR Cominnit ROL cinn rent net nethane Annee hankan Note that "accumulated depreciation is 10 percent of the gross book value of depreciable assets after one year, 20 percent after two years, and so forth Required: a. & b. Compute ROI using historical cost, net book value and gross book value c. & d. Compute ROI using current cost, net book value and gross book value Complete this question by entering your answers in the tabs below. Req A and B Reg C and D Compute Rot using historical cost, net book value and gross book value. (Enter your answers as a percentage rounded to 1 decimal place (l.e., 32.1).) Historical Cost ROI Net Book Value Gross Book Value Year 1 30 Year 2 Year 3 % Year 4 % ReqC and D > Req A and B Req cand D es Compute ROI using current cost, net book value and gross book value. (Enter y decimal place (i.e., 32.1).) Current Cost ROI Net Book Value Gross Book Value % Year 1 Year 2 % % Year 3 % % Year 4 % % Req A and B Req cand D es Compute ROI using current cost, net book value and gross book value. (Enter y decimal place (i.e., 32.1).) Current Cost ROI Net Book Value Gross Book Value % Year 1 Year 2 % % Year 3 % % Year 4 % %

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