Question: Having trouble figuring this out. pol nts skipped eBoDk Prim The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets

Having trouble figuring this out.

Having trouble figuring this out. pol nts skipped
pol nts skipped eBoDk Prim The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $43 million and having a fouryear expected life, after which the assets can be salvaged for $8.6 million. In addition, the division has $43 million in assets that are not depreciable. Alter four years, the division will have $43 million available from these nondepreciable assets. This means thatthe division has invested $86 million in assets with a salvage value of $51.6 million. Annual depreciation is $8.6 million. Annual operating cash ows are $29 million. Depreciation is computed on a straightline basis, recognizing the salvage values noted. Ignore taxes. Assume that the division uses beginningoyearasset values in the denominator for computing ROI. Required: a. 8. b. Compute ROl, using net book value and gross book value. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

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