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Veach Division has total assets (net of accumulated depreciation) of ( $ 462,000 ) at the beginning of year 1 . One of the assets

image text in transcribed Veach Division has total assets (net of accumulated depreciation) of \\( \\$ 462,000 \\) at the beginning of year 1 . One of the assets is a machine that has a net book value of \\( \\$ 50,400 \\). Expected divisional income in year 1 is \\( \\$ 55,440 \\) including \\( \\$ 2,940 \\) in income generated by the machine (after depreciation). Veach's cost of capital is 10 percent. Veach is considering disposing of the asset today (the beginning of year 1). Required: a. Veach computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Veach retains the asset? b. What would divisional ROI be for year 1 assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale? Note: Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1). c. Veach computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1 assuming Veach retains the asset? d. What would divisional residual income be for year 1 assuming Veach disposes of the asset for its book value and there is no gain or loss on the sale

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