xercise $14-46($Algo$)$ Compare ROI Using Net Book and Gross Book Values $($LO $14-2,5)$

he Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $$42\mathrm{.}0$ million and having a pur$-$year expected life, after which the assets can be salvaged for $$8\mathrm{.}4$ million. In addition, the division has $$42\mathrm{.}0$ million in assets that re not depreciable. After four years, the division will have $$42\mathrm{.}0$ million available from these non depreciable assets. This means that he 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 omputing ROI, this division uses beginning$-$of$-$year asset values in the denominator. Depreciation is computed on a straight$-$line basis ecognizing the salvage values noted. Ignore taxes.

Required:

a$.$ xercise $14-46($Algo$)$ Compare ROI Using Net Book and Gross Book Values $($LO $14-2,5)$

he Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $$42\mathrm{.}0$ million and having a pur$-$year expected life, after which the assets can be salvaged for $$8\mathrm{.}4$ million. In addition, the division has $$42\mathrm{.}0$ million in assets that re not depreciable. After four years, the division will have $$42\mathrm{.}0$ million available from these non depreciable assets. This means that he 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 omputing ROI, this division uses beginning$-$of$-$year asset values in the denominator. Depreciation is computed on a straight$-$line basis ecognizing the salvage values noted. Ignore taxes.

Required:

a$.$