Question: Construct a new version of Table, assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6,

Construct a new version of Table, assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business?

Year 10 Asset value Earnings Net investment Free cash flow Earnings growth from previous period (%) 10.00 12.00 14.40 728 20.74 23432647 28.05 29.73 31.51 120 144 1.73 2.07 249 2.81 318 3.36 357 3.78 2.00 240 2.88 3.46 269 3.04 59 .6 78 189 80961.15139-20-23 1591.68 1.79 1.89 20 20 20 20 20 13 13

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