Use the cash flows and competitive spreads shown in the table below. Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs Cash flow NPV (at r = 10%) = 0 Year 0 160 0 1.12 0 0 0 0 -160 ($ millions) Year 1 Year 2 0 1.12 0 0 0 37 -37 57 1.12 63.84 47.00 0 37 -20.16 Years 3-10 97 1.12 108.64 47.00 0 37 24.64 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 F capital of 10%. (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.)

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 10%. (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.) 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 10%. (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 (RO) 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.)