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B. Since companies typically do not publicly provide more than macro levels of asset values, let's assume the following level of assets investment): Assets (fictitious)

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B. Since companies typically do not publicly provide more than macro levels of asset values, let's assume the following level of assets investment): Assets (fictitious) 2017 2016 2015 Domestic streaming $15,000,000 $14,000,000 $10,000,000 International streaming 6,000,000 4,000,000 2,000,000 Domestic DVD 1,500,000 2,000,000 3,000,000 Calculate the return on investment (ROI) for each division. Complete the paragraph using the table. Round answers to whole percentages. 2017 2016 2015 Domestic Streaming L 66.7 X % International Streaming 26.7 X Domestic DVD 6.7 % % % % The ROI for domestic streaming has remained relatively stable . The international streaming ROI has gone up year, going from a negative position to a positive one. The domestic DVD ROI has increased each year. each C. Assume that Netflix uses a cost of capital of 7%. Calculate the residual income (RI) for each of the divisions. Complete the paragraph using the table. 2017 2016 2015 Domestic Streaming $ International Streaming $ Domestic DVD The residual income for domestic streaming is positive and increases each year. The RI for international streaming is negative and decreases in 2016, but while still negative , increases significantly in 2017. The domestic DVD segment is positive and steadily increases each year. B. Since companies typically do not publicly provide more than macro levels of asset values, let's assume the following level of assets investment): Assets (fictitious) 2017 2016 2015 Domestic streaming $15,000,000 $14,000,000 $10,000,000 International streaming 6,000,000 4,000,000 2,000,000 Domestic DVD 1,500,000 2,000,000 3,000,000 Calculate the return on investment (ROI) for each division. Complete the paragraph using the table. Round answers to whole percentages. 2017 2016 2015 Domestic Streaming L 66.7 X % International Streaming 26.7 X Domestic DVD 6.7 % % % % The ROI for domestic streaming has remained relatively stable . The international streaming ROI has gone up year, going from a negative position to a positive one. The domestic DVD ROI has increased each year. each C. Assume that Netflix uses a cost of capital of 7%. Calculate the residual income (RI) for each of the divisions. Complete the paragraph using the table. 2017 2016 2015 Domestic Streaming $ International Streaming $ Domestic DVD The residual income for domestic streaming is positive and increases each year. The RI for international streaming is negative and decreases in 2016, but while still negative , increases significantly in 2017. The domestic DVD segment is positive and steadily increases each year

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