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The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing ( $ 39.0 ) million and having a four-year expected life,
The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing \\( \\$ 39.0 \\) million and having a four-year expected life, after which the assets can be salvaged for \\( \\$ 7.8 \\) million. In addition, the division has \\( \\$ 39.0 \\) million in assets that are not depreciable. After four years, the division will have \\( \\$ 39.0 \\) million available from these non depreciable assets. This means that the division has invested \\( \\$ 78 \\) million in assets with a salvage value of \\( \\$ 46.8 \\) million. Annual operating cash flows are \\( \\$ 12.6 \\) million. In computing ROI, this division uses beginning-of-year asset values 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. Note: Enter your answers as a percentage rounded to 2 decimal place (i.e., 32.10)
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