Exercise 14-45(Algo) Compare Historical Cost, Net Book Value to Gross Book Value (LO 14-2,5) ...
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Accounting
Exercise Algo Compare Historical Cost, Net Book Value to Gross Book Value LO
The Street Division of Labrosse Logistics just started operations. It purchased depreclable 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 avallable from these non depreclable 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 endofyear 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 for each year.
Note: Enter your answers as a percentage rounded to decimal places ie
tableROINet Book Value,Gross Book Value,,Year Year Year Year
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