Please answer a through b-2.

Problem 12-16 Accounting measures of performance Use the cash flows and competitive spreads shown in the table below. Year 0 ($ millions) Year 1 Year 2 Years 3-10 Investment 100 Production (millions of pounds per year ) 0 Spread ($ per pound) 0.95 0.95 Net revenues 0.95 0.95 3B 76 Production costs 30 30 Transport Other costs 20 20 20 Cash flow -100 -20 -12 26 NPV (at r = 8:) = 0 Assume the dividend payout ratio each year is 100%. a. Calculate the year-by year book and economic profitability for investment In polyzone production. Assume straight-line 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.) Period Book income ($ Book rate of Economic income ($ in million) return (%) in million 0 1 10b-1. What is the economic rate of return? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Economic rate of return b-2. Now compute the steady state book rate of return (ROI) for a mature company producing polyzone. Assume no growth and competitive spreads. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ROI