Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 1 Year 2 Years 3-10 Year 110 81 .96 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs 41 .96 39.36 31.00 77.76 31.00 21 21 21 Cash flow -110 -21 -12.64 25.76 NPV (at r.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 "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 (s in Book rate of return millions) (%) Economic income (sin millions) 0 1 2 3 4 5 6 7 8 9 10 b-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 O6-2. Now compute the steady-state book rate of return (RO) for mature company producing polyzone. Assume no growth and competitive spreads. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ROI % Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 1 Year 2 Years 3-10 Year 110 81 .96 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs 41 .96 39.36 31.00 77.76 31.00 21 21 21 Cash flow -110 -21 -12.64 25.76 NPV (at r.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 "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 (s in Book rate of return millions) (%) Economic income (sin millions) 0 1 2 3 4 5 6 7 8 9 10 b-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 O6-2. Now compute the steady-state book rate of return (RO) for mature company producing polyzone. Assume no growth and competitive spreads. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ROI %