Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the street division of labrosse logistics just sta

The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $40.0...

80.2K

Verified Solution

Question

Accounting

The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $40.0 million and having a four-year expected life, after which the assets can be salvaged for $8.0 million. In addition, the division has $40.0 million in assets that are not depreciable. After four years, the division will have $40.0 million available from these non depreciable assets. This means that the division has invested $80 million in assets with a salvage value of $48.0 million. Annual operating cash flows are $12.8 million. In computing ROI, this division uses beginning-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.
Note: Enter your answers as a percentage rounded to 2 decimal place (i.e.,32.10).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You bought one of Bergen Manufacturing Co.’s 5.4 percent coupon bonds one year ago for $1,053....

Finance
Q

How many of the following characteristics can two different logarithmic functions share, while still remaining different? Domain Range y-intercept Intervals...

Basic Math
Q

There can be more than one right answer 12. Renin A. increases Na+ reabsorption B. is released by...

Medical Sciences
Q

(i) Describe the phenomenon of functional sequence variation using antibodies that can bind to a range of...

Biology
Q

2. At a hydrocarbon processing factory, process control involves periodic analysis of samples for a certain...

General Management
Q

Why do some people want less federal power over state decisions Each state has different...

Biology
Q

When two bodies collide elastically the force of interaction between them is conservative 2 non...

Physics
Q

Click the icon to view the accounts and balances Determine the gross profit percentage for...

Basic Math
Q

Determine if the following function is even, odd, or neither.m=|x|/2=1

Basic Math
Q

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin)...

Accounting
Q

Exercise 9-9 Larry's Lawn Service needs to purchase a new lawnmower costing $8,686 to replace...

Accounting
Q

The Carlsbad Corporation produces and markets two types of electronic calculators: Model 4A and Model...

Accounting