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 $49,560. Expected divisional income in year 1 is $55,440 including $2,940 in income generated by the machine (after depreciation). Veachs cost of capital is 10 percent. Veach is considering disposing of the asset today (the beginning of year 1).

Required:

Veach computes ROI using beginning-of-the-year net assets. What will the divisional ROI be for year 1 assuming Veach retains the asset?

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).

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?

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?