Question 2 (of 4) Save & Exit ent Submit ad: 2. value: 5.00 points us G:) nus ed EN P:) E1V SCA 16 EN The Singer Division of Patio Enterprises currently earns $3.54 million and has divisional assets of $23.6 million. The division manager is considering the acquisition of a new asset that will add to profit. The investment has a cost of $3,441,000 and will have a yearly cash flow of $856,500. The asset will be depreciated using the straight-line method over a six-year life and is expected to have no salvage value. Divisional performance is measured using ROI with beginning-of- year net book values in the denominator. The company's cost of capital is 11 percent. Ignore taxes. Required: a. What is the divisional Rol before acquisition of the new asset? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) ROI before acquisition % SII 21 Su b. What is the divisional ROI in the first year after acquisition of the new asset? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) B ROI after acquisition % RIN 201 240 cms etr ud WE References eBook & Resources otr Worksheet Difficulty: 1 Easy UD Learning Objective: 14-02 Interpret and use return on investment (ROI). et S jes wa Check my work