Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 1 Year 2 Years 3-10 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs Year 0 140 0 1.10 0 0 0 0 0 1.10 0 0 0 35 55 1.10 60.50 45.00 0 35 95 1.10 104.50 45.00 0 35 Cash flow -140 35 -19.50 -24.50 NPV (at r= 8%) = 0 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%. (Ne "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 per 0 1 3 4 2 -33.5 0 -49 10.5 Period: Book income ($) Book rate of return (%) Economic income ($) 10.5 10.71 5 10.5 12.5 0 -35 -26.59 9.38 0 5.54 6 7 8 9 10 10.5 10.5 10.5 10.5 Book income ($) Book rate of return (%) Economic income ($) 10.5 25 15 18.75 37.5 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 8 % b-2. Now compute the steady-state book rate of return (ROI) for a mature company producing polyzone. (Do not round intermediate calculations. Enter your answer as a perce ROI % Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 1 Year 2 Years 3-10 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs Year 0 140 0 1.10 0 0 0 0 0 1.10 0 0 0 35 55 1.10 60.50 45.00 0 35 95 1.10 104.50 45.00 0 35 Cash flow -140 35 -19.50 -24.50 NPV (at r= 8%) = 0 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%. (Ne "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 per 0 1 3 4 2 -33.5 0 -49 10.5 Period: Book income ($) Book rate of return (%) Economic income ($) 10.5 10.71 5 10.5 12.5 0 -35 -26.59 9.38 0 5.54 6 7 8 9 10 10.5 10.5 10.5 10.5 Book income ($) Book rate of return (%) Economic income ($) 10.5 25 15 18.75 37.5 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 8 % b-2. Now compute the steady-state book rate of return (ROI) for a mature company producing polyzone. (Do not round intermediate calculations. Enter your answer as a perce ROI %