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Use the cash flows and competitive spreads shown in the table below. millions) Year 0 Year 1 Year 2 Years 3-10 160 Investment Production (millions
Use the cash flows and competitive spreads shown in the table below. millions) Year 0 Year 1 Year 2 Years 3-10 160 Investment Production (millions of pounds per year) 46 86 Spread per pound) 1.01 1.01 1.01 1.01 86.86 Net revenues 46.46 36.00 Production costs 36.00 Transport Other costs 26 26 26 Cash flow -160 26 5.54 24.86 NPV (at 9% 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 9%. (Negative answers should be indicated by a minus sign. Leave no cells blank-be certain to enter "O" 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.) 0 1 2 3 4 5 Period Book income Book rate of return Economic income 6 7 8 9 10 Book income Book rate of return Economic income Use the cash flows and competitive spreads shown in the table below. millions) Year 0 Year 1 Year 2 Years 3-10 160 Investment Production (millions of pounds per year) 46 86 Spread per pound) 1.01 1.01 1.01 1.01 86.86 Net revenues 46.46 36.00 Production costs 36.00 Transport Other costs 26 26 26 Cash flow -160 26 5.54 24.86 NPV (at 9% 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 9%. (Negative answers should be indicated by a minus sign. Leave no cells blank-be certain to enter "O" 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.) 0 1 2 3 4 5 Period Book income Book rate of return Economic income 6 7 8 9 10 Book income Book rate of return Economic income
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