Question: can I get help computing the net book value? The Ste Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing

can I get help computing the net book value?
can I get help computing the net book value? The Ste Marie

The Ste Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $45 million and having a four-year expected life, after which the assets can be salvaged for $9 million. In addition, the division has $45 million in assets that are not depreciable. After four years, the division will have $45 million available from these nondepreciable assets. This means that the division has invested $90 million in assets with a salvage value of $54 million Annual depreciation is $9 million Annual operating cash flows are $20 million Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Assume that the division uses beginning of year asset values in the denominator for computing ROL Required: a. & b. Compute ROI, using net book value and gross book value. (Enter your answers as a percentage roundef to 1 decimal place (l... 32.1).) Answer is complete but not entirely correct. Year 1 Year 2 Year 3 Year 4 Net Book Value 13.6 % 15 3 X % 17.5 % % 20.4 % ROI Gross Book Value 12.2% 122 % 12.2% 122

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