Please answer b

X dugen, wileyplus.com/edugen/student/mainfr.uni Youtube e Maps Current Students |.. LabCorp Solutions :. B&B Reporting - Ju... ShiftWiseTM - Auto... S Sign Now E-Verify: Home Page G homebase login - G... FreshBooks WileyPLUS: MyWileyPLUS | Help | Contact Us | Leg Out US iambalvo, Managerial Accounting, 6e Accounting for Managerial Decision (BUSA 5061) Practice Assignment Gradebook ORION Downloadable eTextbook signment CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Sally Omar is the manager of the office products division of Wallace Enterprises. In this position, her annual bonus is based on an appraisal of return on investment (ROI) measured as Division income : End-of- year division assets (net of accumulated depreciation). Currently, Sally is considering investing $40,000,000 in modernization of the division plant in Tennessee. She estimates that the project will generate cash savings of $6,550,000 per year for 8 years. The plant mprovements will be depreciated over 8 years ($40,000,000 + 8 years = $5,000,000). Thus, the annual effect on income will be $1,550,000 ($6,550,000 - $5,000,000). Click here to view factor tables (a) x Your answer is incorrect. Try again. Using a discount rate of 10 percent, calculate the NPV of the modernization project. (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) NPV 5.3349 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 3 of 3 used (b ) Calculate the ROI of the project each year over its 8-year life. (Calculate ROI as effect on income divided by end-of-year book value. Note that the value of ROI is not defined at the end of year 8 when book value is zero.) (Round answers to 2 decimal places, e.g. 15.25%.) Year ROI y Policy | 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. search O Version 4.24.19.4 3:25 PM 7/1/2020 "prt sc delete home C backspace