bot imag plase. The Street Division of Labrosse Logistics Just started operations. It purchased depreciable assets costing $41.5 million and having afour-year expected life, after which the assets can be salvaged for $8.3 million. In addition, the division has $41.5 million in assets thatare not depreciable. After four years, the division will have $41.5 million available from these non depreciable assets. This means thatthe division has Invested $83 million in assets with a salvage value of $49.8 million. Annual operating cash flows are $13.1 million. Incomputing ROI, this division uses end-of-year asset values in the denominator. Depreciation is computed on a straight-line basis,recognizing the salvage values noted. Ignore taxes.Required:a. & b. Compute ROI, using net book value and gross book value for each year.Note: Enter your answers as a percentage rounded to 2 decimal places (l.e., 32.10).ROINet Book ValueYear 115.66%Year 217.40%19.58%Year 3Year 422.38Gross Book Value15.66%15.66%15.66%%15.66%

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Answered: The Street Division of Labrosse…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 18P

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