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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

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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 $20.03 million at the start of year 1 and sold it a year later, your total profit would be 18.16+3.8720.03=$2.00 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. a. Calculate economic depreciation, book depreciation, economic return, and book return for each year of the plane's 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.) b-2. Would steady-state book return overstate or understate true return? Understate Overstate

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