The Street Divislon of Labrosse Loglstics Just started operations. It purchased depreclable assets costing $$37\mathrm{.}0$ mililon and having a four$-$year expected llfe, after which the assets can be salvaged for $$7\mathrm{.}40$millilon. In addition, the division has $$37\mathrm{.}0$millilon In assets that are not depreclable. After four years, the division will have $$37\mathrm{.}0$ millilon avallable from these nondepreclable assets. Thls means that the division has invested $$74\mathrm{.}0$milli in in assets with a salvage value of $$44\mathrm{.}40$mllil. In computing ROI, thls division uses end$-$of$-$year asset values in the denominator. Depreclation is computed on a straight$-$line basis, recognizing the salvage values noted. Ignore taxes.

In computing ROI, thls division uses end$-$of$-$year asset values. Assume that all cash flows Increase $10$ percent at the end of each year. Thls has the following effect on the assets' rejlacement cost and annual cash flows:

$\backslash$table$[[\backslash$table$[[$End of$],[$Year$]],$Replacement Cost,Annual Cash Flow$],[1,$$$74,000,0001\mathrm{.}1=$$$81,400,000,$$$13,000,0001\mathrm{.}1=$$$14,300,000$