10 points Item Skipped eBookReferencesCheck my workCheck My Work button is now enabled3Item 4 Problem 12-16 Accounting measures of performance Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 0 Year 1 Year 2 Years 310 Investment 140 Production (millions of pounds per year) 0 0 55 95 Spread ($ per pound) 1.10 1.10 1.10 1.10 Net revenues 0 0 60.50 104.50 Production costs 0 0 45.00 45.00 Transport 0 0 0 0 Other costs 0 35 35 35 Cash flow 140 35 19.50 24.50 NPV (at r = 8%) = 0 Assume the dividend payout ratio each year is 100%. a. Calculate the yearbyyear book and economic profitability for investment in polyzone production. Assume straightline depreciation over 10 years and a cost of capital of 8%. (Negative answers should be indicated by a minus sign. Leave no cells blank be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your income answers in millions rounded to 2 decimal places and enter the rate of return as a percent rounded to 2 decimal places.) b1. What is the economic rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b2. Now compute the steadystate book rate of return (ROI) for a mature company producing polyzone. Assume no growth and competitive spreads. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)