F A division is considering the acquisition of a new asset that will cost $2,880,000 and have a cash flow of $710,000 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: a. & b. What is the ROI for each year of the asset's life if 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 "ROI" answers as a percentage rounded to 1 decimal place (i.e., 32.1). Negative amounts should be indicated by a minus sign.) Residual Income Year Investment Base ROI $ 1 % 2,880,000 AWN % % % Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Sales revenue Cost of sales Allocated corporate overhead Other general and administration Lake Region $4,040,000 2,631,300 242,400 541,900 Coastal Region $12,950,000 6,475,000 777,000 3,743,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. (Enter your answers in thousands of dollars rounded to 1 decimal place.) Lake Region Coastal Region Operating income b-1. What are the gross margin and operating margin percentages for both divisions? (Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.12).) Gross margin percentage Operating margin Lake Region Coastal Region % % % %