The table given below shows how, on average, the market value of a Boeing 737 has varied with its age and the cash flow needed in each year to provide a 10% return. (For example, if you bought a 737 for $19.87 million at the start of year 1 and sold it a year later, your total profit would be 18.08 + 3.78 19.87 = $1.99 million, 10% of the purchase cost.)

Assume airlines write off their aircraft straight-line over 15 years to a salvage value equal to 20% of the original cost.

Start of Year	Market Value	Cash Flow
1	19.87
2	18.08	3.78
3	16.97	2.92
4	15.87	2.80
5	15.07	2.39
6	14.18	2.40
7	13.54	2.06
8	12.77	2.12
9	12.23	1.82
10	11.55	1.90
11	11.09	1.62
12	10.48	1.72
13	10.09	1.44
14	9.53	1.57
15	9.19	1.29
16	8.68	1.43

a. Calculate economic depreciation, book depreciation, economic return, and book return for each year of the planes life. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions except for percentage values. Round your percentage answers to 1 decimal place and other answers to 2 decimal places.) b-1. Suppose an airline invested in a fixed number of Boeing 737s each year. Calculate the steady-state book rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Start of Year	Economic depreciation	Book depreciation	Economic return (%)	Book return (%)
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16