Value of the film and digital camera industries. Download the CIPA camera shipment and sales data spreadsheet from Brightspace. Look at the table with the value of all shipments in each year (measured in millions of Yen, rows 86 to 162). Focus on film and digital cameras (columns S and H respectively). Assume that the profits from camera sales were 10% of revenues in every year, and that 50% of earnings were paid out in dividends and other distributions such as share buybacks. Assume further that camera sales go to 0 in 2022 and stay at 0 in perpetuity. In each year from 1951 onwards, compute the present value of the dividends from all future camera sales assuming a discount rate of 10%. Assume that dividends are paid at year end and that PV is computed at the beginning of the year. a. In which year does the PV of future film camera sales peak? b. In which year does the PV of future digital camera sales peak? c. In which year does the PV of future film camera sales drop below that of future digital camera sales?

Note: To prevent repetitive work, either write a program to compute the answers, or, if you work in Excel carefully lay out your sequence of revenues, dividends and their discounted values at the start of each year.

Fig- 1.1

Note : Track records for Interchangeable Lenses in 2007 -2017 excluded the figures of Lenses for Medium and Large format cameras