The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $$36\mathrm{.}5$ million and

having a four$-$year expected life, after which the assets can be salvaged for $$7\mathrm{.}30$ million. In addition, the division has $$36\mathrm{.}5$

million in assets that are not depreciable. After four years, the division will have $$36\mathrm{.}5$ million available from these

nondepreciable assets. This means that the division has invested $$73\mathrm{.}0$ million in assets with a salvage value of $$43\mathrm{.}80$ million.

Annual operating cash flows are $$12\mathrm{.}5$ million. In computing ROI, this division uses end$-$of$-$year asset values in the

denominator. Depreciation is computed on a straight$-$line basis, recognizing the salvage values noted. Ignore taxes.

In computing ROI, this division uses end$-$of$-$year asset values. Assume that all cash flows increase $10$ percent at the end of

each year. This has the following effect on the assets' replacement cost and annual cash flows:

Depreciation is as follows.

Note that "accumulated" depreciation is $10$ percent of the gross book value of depreciable assets after one year, $20$ percent

after two years, and so forth.

Required:

a$.$ & b$.$ Compute ROI using historical cost, net book value and gross book value.

c$.$ & d$.$ Compute ROI using current cost, net book value and gross book value.

Complete this question by entering your answers in the tabs below.

Req A and $B$

Req $C$ and $D$

Compute ROI using historical cost, net book value and gross book value.

Note: Enter your answers as a percentage rounded to $2$ decimal place $($i$.$e$.,32\mathrm{.}10).$