$($LO $14-2,3)$

$14-43.$ Impact of an Asset Disposal on Performance Measures

income generated by the machine $($after depreciation$).$ Veach's cost of capital is $10$ percent. Veach is considering disposing of the asset today $($the beginning of year $1).$

Required

a$.$ Veach computes ROI using beginning$-$of$-$year net assets. What will the divisional ROI be for year $1$ assuming Veach retains the asset?

b$.$ What would divisional ROI be for year $1$ assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale?

c$.$ Veach computes residual income using beginning$-$of$-$year net assets. What will the divisional residual income be for year $1$ assuming Veach retains the asset?

d$.$ What would divisional residual income be for year $1$ assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale?

$($LO $14-2,3)$

$14-44.$ Impact of an Asset Disposal on Performance Measures

without penalty at any time.

Required

a$.$ Veach computes ROI using beginning$-$of$-$year net assets. What will the divisional ROI be for year $1$ assuming Veach retains the asset?

b$.$ What would divisional ROI be for year $1$ assuming Veach disposes of the asset?

c$.$ Veach computes residual income using beginning$-$of$-$year net assets. What will the divisional residual income be for year $1$ assuming Veach retains the asset?

d$.$ What would divisional residual income be for year $1$ assuming Veach cancels the lease on the machine?

Please just answer all of $14-44$ a$,$ b$,$ c$,$ d$!!!$