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The Singer Division of Patio Enterprises currently earns $2.94 million and has divisional assets of $21.0 million. The division manager is considering the acquisition of

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The Singer Division of Patio Enterprises currently earns $2.94 million and has divisional assets of $21.0 million. The division manager is considering the acquisition of a new asset that will add to profit. The investment has a cost of $3,393,000 and will have a yearly cash flow of $844.500. The asset will be depreciated using the straight-line method over a six-year life and is expected to have no salvage value, Divisional performance is measured using Rol with beginning-of-year net book values in the denominator . The company's cost of capital is 13 percent. Ignore taxes. The division manager learns that he has the option to lease the asset on a year-to-year lease for $743,000 per year. All depreciation and other tax benefits would accrue to the lessor. Required: What is the divisional ROI if the asset is leased? (Enter your answer as a percentage rounded to 1 decimal place de 32.1)) a ROU %

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