19. The Web site www.mhhe.com/bma contains an Excel program for calculating the profitability of the Nodhead project. Now suppose that the cash flows from Nodhead’s new supermarket are as follows:

Year 0 1 2 3 4 5 6 Cash flows ($ thousands) ⫺1,000 ⫹298 ⫹298 ⫹298 ⫹138 ⫹138 ⫹140

a. Recalculate economic depreciation. Is it accelerated or decelerated?

b. Rework Tables 12.2 and 12.3 to show the relationship between ( i ) the “true” rate of return and book ROI and ( ii ) true EVA and forecasted EVA in each year of the project’s life.