Exercise $14-45($Algo$)$ Compare Historical Cost, Net Book Value to Gross Book Value $($LO $14-2,5)$

The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $$42\mathrm{.}0$ million and having a four$-$year expected life, after which the assets can be salvaged for $$8\mathrm{.}4$ million. In addition, the division has $$42\mathrm{.}0$ million in assets that are not depreciable. After four years, the division will have $$42\mathrm{.}0$ million available from these non depreciable assets. This means that the division has invested $$84$ million in assets with a salvage value of $$50\mathrm{.}4$ million. Annual operating cash flows are $$13\mathrm{.}2$ 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.

Required:

a$.$ & b$.$ Compute ROI, using net book value and gross book value for each year.