=+The cooker sales sector uses £2m of capital and will return 14 per cent per annum for seven years when its planning horizon ends. Its WACC is 16 per cent.

The export sector has a positive performance spread of 2 per cent over WACC for the next six years. The required rate of return is 17 per cent. From Year 7 the perform-

ance spread becomes zero. This division uses £1.5m of capital.

Required a

Calculate the annual (entity version) economic profit of each sector.