Consider the table given below to answer the following question. The long-run growth rate is projected at 7% and discount rate is 10%. Assuming that the competition drives down profitability (on existing assets as well as new investment) to:

12.5% in year 6

12% in year 7

11.5% in year 8

and 9% in year 9 and all later years. What is the value of the concatenator business? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Show all workings please ANSWER CORRECTLY

Year	1	2	3	4	5	6	7	8	9	10
Asset Value	10.00	11.30	12.77	14.43	15.87	17.46	19.20	20.55	21.99	23.53
Earnings	1.30	1.47	1.66	1.88	2.06	2.18	2.30	2.36	1.98	2.12
Net Investment	1.30	1.47	1.66	1.44	1.59	1.75	1.34	1.44	1.54	1.65
Free Cash flow (FCF)				0.43	0.48	0.44	0.96	0.92	0.44	0.47
Return on equity (ROE)	0.13	0.13	0.13	0.13	0.13	0.125	0.12	0.115	0.09	0.09
Asset growth rate	0.13	0.13	0.13	0.10	0.10	0.10	0.07	0.07	0.07	0.07
Earnings growth rate		0.13	0.13	0.13	0.10	0.06	0.06	0.03	--0.16	0.07