Suppose you purchase new PP&E for $300,000 that you plan to depreciate straight-line over 6 years ($50,000 per year). You also have $200,000 in other assets with no depreciation. Your profits are $80,000 per year after depreciation expense. Year Depreciation expense 1 $50,000 $80,000 2 $50,000 $80,000 Profit after Accumulated Depreciation Depreciation $50,000 $100,000 Gross Book Value Net Book Value ROI $500,000 $450,000 ? $500,000 $400,000 ? 3 $50,000 $80,000 $150,000 $500,000 $350,000 ? What is ROI each year based on: 1. Gross book value? 2. Net book value?