The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $145 m having a four-year expected life, after which the assets can be salvaged for $29 million. In addition, the division has $145 m assets that are not depreciable. After four years, the division will have $145 million available from these nondepreciable ass means that the division has invested $290 million in assets with a salvage value of $174 million. Annual depreciation is $29 Annual operating cash flows are $80 million. In computing ROI, this division uses end-of-year asset values in the denominat Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Assume that the com a 12 percent cost of capital. Required: a. Compute residual income, using net book value for each year. b. Compute residual income, using gross book value for each year. (Enter your answers in thousands of dollars.) Year 1 Year 2 Year 3 Year 4 Residual Income Net Book Gross Book Value Value Rectangular Snip