Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 1 Year 2 Year 6 120 Years 3-10 1.08 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs 1.08 @ a 53 1.08 57.24 43.80 93 1.08 100.44 43.00 @ 33 33 33 Cash flow -120 -33 -18.76 24.44 NPV (at r -7%) - O 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 7%. (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 ($ in Book rate of return millions) (%) Economic income ($ in 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 % 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.) ROI % Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 1 Year 2 Year 6 120 Years 3-10 1.08 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs 1.08 @ a 53 1.08 57.24 43.80 93 1.08 100.44 43.00 @ 33 33 33 Cash flow -120 -33 -18.76 24.44 NPV (at r -7%) - O 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 7%. (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 ($ in Book rate of return millions) (%) Economic income ($ in 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 % 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.) ROI %