Consider the table given below to answer the following question.

	Year
	1		2		3		4		5		6		7		8		9		10
Asset value	9.00		10.26		11.70		13.33		14.80		16.43		18.24		19.69		21.27		22.97
Earnings	1.26		1.44		1.64		1.87		2.07		2.22		2.37		2.46		2.13		2.30
Net investment	1.26		1.44		1.64		1.47		1.63		1.81		1.46		1.58		1.70		1.84
Free cash flow (FCF)							0.40		0.44		0.41		0.91		0.89		0.43		0.46
Return on equity (ROE)	0.14		0.14		0.14		0.14		0.14		0.135		0.13		0.125		0.10		0.10
Asset growth rate	0.14		0.14		0.14		0.11		0.11		0.11		0.08		0.08		0.08		0.08
Earnings growth rate			0.14		0.14		0.14		0.11		0.07		0.07		0.04		0.14		0.08

Assuming that competition drives down profitability (on existing assets as well as new investment) to 13.5% in year 6, 13% in year 7, 12.5% in year 8, and 10% in year 9 and all later years. What is the value of the concatenator business? Assume 12% cost of capital.

Consider the table given below to answer the following question. 1 2 10.26 0 19.69 9.00 1.26 1.26 3 11.70 1.84 1.84 1.44 Asset value Earnings Net investnant Free cash flow (FCF) Return on equity (ROE) Asset grovth rate Earnings growth rate 4 13. 33 1.97 1.47 0.40 0.14 0.11 0.14 Year 5 6 14.90 16.43 2.07 2.22 1.83 1.81 0.44 0.41 0.14 0.135 0.11 0.11 0.11 0.07 7 10.24 2.37 1.46 0.91 0.13 0. OB 0.07 9 21.27 2. 13 1.70 0.43 0.10 0.08 -0.14 10 22.97 2. 30 1.84 0.40 0.10 0.08 0.08 0.14 0.14 1.58 0.89 0.125 0.08 0.04 0.14 0.14 0.14 0.14 0.14 0.14 Assuming that competition drives down profitability (on existing assets as well as new investment) to 13.5% in year 6, 13% in year 7. 12.5% in year 8. and 10% in year 9 and all later years. What is the value of the concatenator business? Assume 12% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value million Consider the table given below to answer the following question. 1 2 10.26 0 19.69 9.00 1.26 1.26 3 11.70 1.84 1.84 1.44 Asset value Earnings Net investnant Free cash flow (FCF) Return on equity (ROE) Asset grovth rate Earnings growth rate 4 13. 33 1.97 1.47 0.40 0.14 0.11 0.14 Year 5 6 14.90 16.43 2.07 2.22 1.83 1.81 0.44 0.41 0.14 0.135 0.11 0.11 0.11 0.07 7 10.24 2.37 1.46 0.91 0.13 0. OB 0.07 9 21.27 2. 13 1.70 0.43 0.10 0.08 -0.14 10 22.97 2. 30 1.84 0.40 0.10 0.08 0.08 0.14 0.14 1.58 0.89 0.125 0.08 0.04 0.14 0.14 0.14 0.14 0.14 0.14 Assuming that competition drives down profitability (on existing assets as well as new investment) to 13.5% in year 6, 13% in year 7. 12.5% in year 8. and 10% in year 9 and all later years. What is the value of the concatenator business? Assume 12% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value million