Exercise $14-45($Algo$)$ Compare Historical Cost, Net Book Value to Gross Book Value $($LO $14-2,5)$

The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $$37\mathrm{.}5$ million and having a four$-$year expected life, after which the assets can be salvaged for $$7\mathrm{.}5$ million. In addition, the division has $$37\mathrm{.}5$ million in assets that are not depreciable. After four years, the division will have $$37\mathrm{.}5$ million available from these non depreciable assets. This means that the division has invested $$75$ million in assets with a salvage value of $$45\mathrm{.}0$ million. Annual operating cash flows are $$12\mathrm{.}3$ 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.

Required:

a$.$ & b$.$ Compute ROI, using net book value and gross book value for each year.

Note: Enter your answers as a percentage rounded to $2$ decimal places $($i$.$e$.,32\mathrm{.}10).$