Consider an asset with the following cash flows:

	Year 0	Year 1	Year 2	Year 3
Cash flows ($ millions)	60	26.00	24.00	22.00

The firm uses straight-line depreciation. Thus, for this project, it writes off $20 million per year in years 1, 2, and 3. The discount rate is 10%.

1. Complete the following table.

2. Does the economic depreciation equal the book depreciation?

3. Is the book rate of return the same in each year?

4. Is the project's book profitability its true profitability?