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The Singer Division of Patio Enterprises currently earns s a new asset that will add to profit. The investment has a cost of $3,387.000 and

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The Singer Division of Patio Enterprises currently earns s a new asset that will add to profit. The investment has a cost of $3,387.000 and will have a yearly cash flow of $843,000. The asset will be depreciated using the straight-line method over a sx-year life and is expected to have no salvage value. Divisional performance is measured values in the denominator. The company's cost of capital is 12 percent. ignore taxes 2.60 million and has divisiona I assets of $20.0 million The division manager is considering the acquisition of ve no salvage value. Divisional performance is measured using ROI with beginning-of-year net book Required a. What is the divisional ROI before acquisition of the new asset? (Enter your answer as a percentage rounded to 1 decimal place (ie., 32.1) 1% b. what is the divisional ROI in the first year after acquisition of the new asset? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 32.-1)) The Singer Division of Patio Enterprises currently earns s a new asset that will add to profit. The investment has a cost of $3,387.000 and will have a yearly cash flow of $843,000. The asset will be depreciated using the straight-line method over a sx-year life and is expected to have no salvage value. Divisional performance is measured values in the denominator. The company's cost of capital is 12 percent. ignore taxes 2.60 million and has divisiona I assets of $20.0 million The division manager is considering the acquisition of ve no salvage value. Divisional performance is measured using ROI with beginning-of-year net book Required a. What is the divisional ROI before acquisition of the new asset? (Enter your answer as a percentage rounded to 1 decimal place (ie., 32.1) 1% b. what is the divisional ROI in the first year after acquisition of the new asset? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 32.-1))

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