Use the cash flows and competitive spreads shown in the table below.

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.$)$

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.$)$

b$-2.$ Now compute the steady$-$state book rate of return $($ROI$)$ for a 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.$)$