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The Pistachio Division of Nut Corporation has just begun operations during the current period. I has purchased $1.500,000 of depreciable assets with an estimated life

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The Pistachio Division of Nut Corporation has just begun operations during the current period. I has purchased $1.500,000 of depreciable assets with an estimated life of five years with an estimated salvage value of $300,000. In addition, the division has purchased $1,000,000 of assets for use in operations that are not depreciable. At the end of five years, these assets will still have an estimated value of $1,000,000. All divisions of the Nut Corporation use straight line depreciation for financial accounting book purposes. The Pistachio Division expects to earn $800,000 income before taxes and depreciation for each of the five years it is invested in these assets. The division's estimated income tax rate is 25% Nut Corporation expects a rate of return of 20% before tax and 14% after tax from its operating divisions. REQUIRED: (1) (2) Compute the Pistachio Division's return on investment (ROI) for each of the five years, assuming the following. Round your answers to four decimal places. (a) Before tax income and gross book value of assets are used to calculate ROI (b) After tax income and net book value of assets are used to calculate ROI. Compute the Pistachio Division's residual income (RI) for each of the five years, assuming the following. Round your answers to the nearest whole dollar. (a) Before tax income and net book value of assets are used to calculate RI. (b) After tax income and gross book value of assets are used to calculate RI

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