Consider the table given below to answer the following question.

	Year
	1		2		3		4		5		6		7		8		9		10
Asset value	10.00		11.70		13.69		16.02		18.26		20.81		23.73		26.34		29.24		32.45
Earnings	1.70		1.99		2.33		2.72		3.10		3.43		3.80		4.08		3.80		4.22
Net investment	1.70		1.99		2.33		2.24		2.56		2.91		2.61		2.90		3.22		3.57
Free cash flow (FCF)							0.48		0.55		0.52		1.19		1.19		0.58		0.65
Return on equity (ROE)	0.17		0.17		0.17		0.17		0.17		0.165		0.16		0.155		0.13		0.13
Asset growth rate	0.17		0.17		0.17		0.14		0.14		0.14		0.11		0.11		0.11		0.11
Earnings growth rate			0.17		0.17		0.17		0.14		0.11		0.11		0.08		0.07		0.11

Assuming that competition drives down profitability (on existing assets as well as new investment) to 16.5% in year 6, 16% in year 7, 15.5% in year 8, and 13% in year 9 and all later years. What is the value of the concatenator business? Assume 14% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Consider the table given below to answer the following question. 1 10.00 1.70 1.70 2 11.70 1.99 1.99 3 13.69 2.33 2.33 Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 4 16.02 2.72 2.24 0.48 0.17 0.14 0.17 Year 5 6 18.26 20.81 3.10 3.43 2.56 2.91 0.55 0.52 0.17 0.165 0.14 0.14 0.14 0.11 7 23.73 3.80 2.61 1.19 0.16 0.11 0.11 8 26.34 4.08 2.90 1.19 O. 155 0.11 0.08 9 29.24 3.80 3.22 0.58 0.13 0.11 -0.07 10 32.45 4.22 3.57 0.65 0.13 0.11 0.11 0.17 0.17 0.17 0.17 0.17 0.17 0.17 0.17 Assuming that competition drives down profitability (on existing assets as well as new investment) to 16.5% in year 6, 16% in year 7, 15.5% in year 8, and 13% in year 9 and all later years. What is the value of the concatenator business? Assume 14% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Present value $ 2.24 million