The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $50.0 million and having a four-year expected life, after which the assets can be salvaged for $10.0 million. In addition, the division has $50.0 million in assets that are not depreciable. After four years, the division will have $50.0 million available from these nondepreciable assets. This means that the division has invested $100.0 million in assets with a salvage value of $60.0 million. Annual depreciation is $10.0 million. Annual operating cash flows are $21.0 million. In computing ROI, this division usesend-of-year assetvalues in the denominator. Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes.

Required:

a. & b.Compute ROI, using net book value and gross book value for each year.(Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets cos after which the assets can be salvaged for $10.0 million. In addition, the division has $50.0 million in assets that are not de $50.0 million available from these nondepreciable assets. This means that the division has invested $100.0 million in assets depreciation is $10.0 million. Annual operating cash fows are $21.0 million. In computing ROI, this division uses end-of-yea computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Compute ROI, using net book value and gross book value for each year. * ROI Year Net Book Value Gross Book Value Year 1 Year 2 Year 3 Year 4 ased depreciable assets costing $50.0 million and having a four-year expected life, illion in assets that are not depreciable. After four years, the division will have vested $100.0 million in assets with a salvage value of $60.0 million. Annual OI, this division uses end-of-year asset values in the denominator. Depreciation is