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Problem 8: The G division of the GHI Corporation proposes the following investment in a new product line: Investment in fixed assets 1,00,000 Annual profits before depreciation but after taxes * 25,000 (i.e., annual cash flow) Life 5 years The GHI Corporation used the time adjusted rate of return, with a cut-off rate of 8% in evaluating its capital investment proposals. A * 25,000 cash in flow for five years on an investment of 1,00,000 has a time adjusted return of 8%. Consequently, the proposed investment is acceptable under the company's criterion. Assume that the project is approved and that the investment and profit were the same as estimated. Assets are included in the divisional investment base at the average of the beginning of the years net book value. Required: Calculate the rate of return that is earned by the G division on the new investment for average rate for the five years, using straight line depreciation. each year and the