The Ste Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing $45 million and having a four-year expected life, after which the assets can be salvaged for $9 million. In addition, the division has $45 million in assets that are not depreciable. After four years, the division will have $45 million available from these nondepreciable assets This means that the division has invested $90 million in assets with a salvage value of $54 million Annual depreciation is $9 million Annual operating cash flows are $30 million in computing ROI, this division uses end of your asset values in the denominator Depreciation is computed on a straight-line bosts, recognizing the salvage values noted Ignore taxes. Assume that all cash flows increase 10 percent at the end of each year. This has the following offect on the assets' replacement cost and annual cash flows End of Year Replacement Cost Annual Cash Flow $ 90,000,000 1.1 - 199,000,000 $ 30,000,000 1.1 $33,000,000 $ 99,000,000 1.1 - $108,900,000 $ 33,000,000 1.1 $36,900,000 3 Etc. Etc 4 Depreciation is as follows Year 1 2 1 4 For the Year 59,400,000 10,890.000 11,979,000 13,176,900 Accumulated" $ 9,900,000 (-10% $99,000,000) 21,750,000 (-20% 108,900,000) 35,937,000 52,707,600 Note that accumulated depreciation is 10 percent of the gross book value of depreciable assets after one year 20 percent after two years, and so forth Required: . & b. Compute Rol using historical cost, net book value and gross book value c. & d. Compute Rol using current cost, net book value and gross book value Complete this question by entering your answers in the tabs below. Reg A and B Reg Cand D Compute Rol using historical cost, net book value and gross book value. (Enter your answers as a percentage rounded to 1 decimal place (1.32.1).) ROI Net Book Value Gross Book Value Historical Cost Yoar 1 Your 2 Yew 3 Your 4 % RoC and D > 1/6, 52,707,600 Note that accumulated" depreciation is 10 percent of the gross book value of depreciable assets afte years, and so forth Required: a. & b. Compute ROI using historical cost, net book value and gross book value c. & d. Compute ROI using current cost, net book value and gross book value. Complete this question by entering your answers in the tabs below. Req A and B Reg C and D Compute ROI using current cost, net book value and gross book value. (Enter your answers as a percenta decimal place (i.e., 32.1).) Current Cost Year 1 Year 2 Year 3 Year 4 ROI Net Book Value Gross Book Value % % % %