Question: Please show how you got all the numbers!!!! The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $42.5

Please show how you got all the numbers!!!! Please show how you got all the numbers!!!! The Ste. Marie Division

The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $42.5 million and having a four-year expected life, after which the assets can be salvaged for $8.5 million. In addition, the division has $42.5 million in assets that are not depreciable. After four years, the division will have $42.5 million available from these nondepreciable assets. This means that the division has invested $85.0 million in assets with a salvage value of $51.0 million. Annual depreciation is $8.5 million. Annual operating cash flows are $21.6 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. a. & b. Compute ROl, using net book value and gross book value for each year. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) ROI Net Book Value Gross Book Value Year 1 Year 2 Year 3 Year 4

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