Noonan Division has total assets (net of accumulated depreciation) of $3,300,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $300,000. Expected divisional income in year 1 is $495,000 including $42,000 in income generated by the machine (after depreciation). Noonan's cost of capital is 12 percent. Noonan is considering disposing of the asset today (the beginning of year 1).

I need help solving the following questions: 1) Noonan computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Noonan retains the asset? (rounded to 1 decimal place.) ROI before disposal ___%.

2) What would divisional ROI be for year 1 assuming Noonan disposes of the asset for its book value (there is no gain or loss on the sale)? (round to 1 decimal place.) ROI after disposal ____%.

3) Noonan computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1 assuming Noonan retains the asset? Residual income before disposal ______.