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Veach Division has total assets ( net of accumulated depreclation ) of $ 4 6 2 , 0 0 0 at the beginning of year
Veach Division has total assets net of accumulated depreclation of $ at the beginning of year One of the assets is a machlne that has a net book value of $ Expected divisional income In year is $ Including $ In Income generated by the machine after depreclation Veach's cost of capltal is percent. Veach is considering disposing of the asset today the beginning of year
Required:
a Veach computes ROI using beginningoftheyear net assets. What will the divisional ROI be for year assuming Veach retains the asset?
b What would divisional ROI be for year assuming Veach disposes of the asset for its book value and there is no galn or loss on the sale?
Note: Enter your answer as a percentage rounded to decimal place e
c Veach computes residual Income using beginningoftheyear net assets. What will the divisional residual Income be for year assuming Veach retains the asset?
d What would divislonal residual Income be for year assuming Veach disposes of the asset for its book value and there is no galn or loss on the sale?
tablea ROI before disposal,
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