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please bold final answer and put answer in the boxses provided. thank you Veach Division has total assets (net of accumulated depreciation) of $462.000 at
please bold final answer and put answer in the boxses provided. thank you
Veach Division has total assets (net of accumulated depreciation) of $462.000 at the beginning of yeat 1. One of the assets is a machine that has a net book value of $46,200. Expected divisional income in year 1 is $55.440 including $2,940 in 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: o. Veach computes ROI using beginning-of-the-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? Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1). c. Veach computes residual income using beginning-of-the-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 Step by Step Solution
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