er 14 Homework Seved F 2 Exercise 14-26 (Algo) ROI versus RI (LO 14-2, 3) A division is considering the acquisition of a new asset that will cost $2,580,000 and have a cash flow of $770,000 per year for each of the four years of its life. Depreciation is computed on a straight line basis with no salvage value ignore taxes Required: 6. & b. What is the Rol for each year of the asset's life it the division uses beginning of year asset balances and net book value for the computation? What is the residual income each year if the cost of capital is 8 percent? (Enter "ROT"answers as a percentage rounded to 1 decimal place tl., 32.1). Negative amounts should be indicated by a minus sign) Year 1 2 3 4 Investment Base $ 2,580,000 1,035,000 1,200,000 645 000 ROI Residual Income 40s (81400) % (20.000) 21,800 73400