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The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $ 4 2 . 0 million and having a

The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $42.0 million and having a four-year expected life, after which the assets can be salvaged for $8.4 million. In addition, the division has $42.0 million in assets that are not depreciable. After four years, the division will have $42.0 million available from these nondepreciable assets. This means that the division has invested $84.0 million in assets with a salvage value of $50.4 million. Annual depreciation is $8.4 million. Annual operating cash flows are $21.5 million. In computing ROI, this division uses end-of-year asset values in the denominator. Depreciation is computed on a straightline 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).)
\table[[,ROI],[,Net Book Value,Gross Book Value],[Year 1,,%,,%
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