ROI |
||
Net Book Value |
Gross Book Value |
|
Year 1 |
15.4% |
13.9% |
Year 2 |
17.3% |
13.9% |
Year 3 |
19.8% |
13.9% |
Year 4 |
23.1% |
13.9% |
Net Book Value :-
Year 1 = ($21000000 - $8800000)/($88000000 - $8800000) = 15.4%
Year 2 = ($21000000 - $8800000)/($88000000 – [$8800000*2]) = 17.3%
Year 3 = ($21000000 - $8800000)/($88000000 – [$8800000*3]) = 19.8%
Year 4 = ($21000000 - $8800000)/($88000000 – [$8800000*4]) = 23.1%
Gross Book Value :-
Year 1 = ($21000000 - $8800000)/($88000000) = 13.9%
Year 2 = ($21000000 - $8800000)/($88000000) = 13.9%
Year 3 = ($21000000 - $8800000)/($88000000) = 13.9%
Year 4 = ($21000000 - $8800000)/($88000000) = 13.9%
The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased depreciable assets costing...
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