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The Plasucs Division of Minock Manufacturing currently earns $3.22 million and has divisional assets of $23 million. The division manager is considering the acquisition of

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The Plasucs Division of Minock Manufacturing currently earns $3.22 million and has divisional assets of $23 million. The division manager is considering the acquisition of a new asset that will add to profit The investment has a cost of $5.454.000 and wit have a yearly cash flow of $1,455,500. The asset will be depreclated using the straight-line method over a five-year life and is expected to have no salvage value. Divisional performance is measured using Roi with beginning-of-year net book values in the denominator The company's cost of capital is 7 percent. Ignore taxes. Required: 0. What is the divisional ROI before acquisition of the new asset? b. What is the divisional ROI in the first year after acquisition of the new asset? Note: For all requlrements, enter your onswers as a percentage rounded to 1 decimal place (1.e., 32.0)

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