The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $40.0...
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The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $ million and having a fouryear expected life, after which the assets can be salvaged for $ million. In addition, the division has $ million in assets that are not depreciable. After four years, the division will have $ million available from these non depreciable assets. This means that the division has invested $ million in assets with a salvage value of $ million. Annual operating cash flows are $ million. In computing ROI, this division uses beginningofyear asset values in the denominator. Depreciation is computed on a straightline basis, recognizing the salvage values noted. Ignore taxes.
Required:
a & b Compute ROI, using net book value and gross book value.
Note: Enter your answers as a percentage rounded to decimal place ie
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