Help Save & Consider the table given below to answer the following question. 2 Year 2 3 4 5 6 7 8 9 10 Asset value 10.00 11.20 12.54 14.05 15.31 16.69 18.19 19.29 20.44 21.67 Earnings 1.20 1.34 1.51 1.69 1.84 1.92 2.00 2.03 1.64 1.73 Net 1.20 1.34 1.51 1.26 1.38 1.50 1.09 1.16 1.23 1.30 investment Free cash 0.00 0.00 0.00 0.42 0.46 0.42 0.91 flow (FCE) 0.87 0.41 0.43 Return on equity 0.12 0.12 0.12 0.12 0.12 0.115 0.11 0.105 0.08 0.08 (ROE) Asset 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 0.06 growth rate 0.12 0.12 0.12 0.09 0.04 0.04 0.01 -0.19 0.06 growth rate Earnings 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? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ 2.34 million Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does Year 5 6 7 8 9 10 Asset value 10.00 11.20 12.54 14.05 15.31 16.69 18.19 19.29 20.44 21.67 Earnings 1.20 1.34 1.51 1.69 1.84 1.92 2.00 2.03 1.64 1.73 Net 1.20 1.34 1.51 1.26 investment 1.38 1.50 1.09 1.16 1.23 1.30 Free cash 0.00 0.00 0.00 0.42 0.46 0.42 0.91 0.87 0.41 0.43 flow (FCF) Return on equity 0.12 0.12 0.12 0.12 0.12 0.115 0.11 0.105 0.08 0.08 (ROE) Asset + 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 0.06 Earnings 0.12 0.12 0.12 0.09 0.04 0.04 0.01 -0.19 0.06 growth rate Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in ye 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? (Do not to calculations. Enter your answer in millions rounded to 2 decimal places.) & Answer is complete but not entirely correct. Present value S 23.36 million Help Save & Consider the table given below to answer the following question. 2 Year 2 3 4 5 6 7 8 9 10 Asset value 10.00 11.20 12.54 14.05 15.31 16.69 18.19 19.29 20.44 21.67 Earnings 1.20 1.34 1.51 1.69 1.84 1.92 2.00 2.03 1.64 1.73 Net 1.20 1.34 1.51 1.26 1.38 1.50 1.09 1.16 1.23 1.30 investment Free cash 0.00 0.00 0.00 0.42 0.46 0.42 0.91 flow (FCE) 0.87 0.41 0.43 Return on equity 0.12 0.12 0.12 0.12 0.12 0.115 0.11 0.105 0.08 0.08 (ROE) Asset 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 0.06 growth rate 0.12 0.12 0.12 0.09 0.04 0.04 0.01 -0.19 0.06 growth rate Earnings 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? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ 2.34 million Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does Year 5 6 7 8 9 10 Asset value 10.00 11.20 12.54 14.05 15.31 16.69 18.19 19.29 20.44 21.67 Earnings 1.20 1.34 1.51 1.69 1.84 1.92 2.00 2.03 1.64 1.73 Net 1.20 1.34 1.51 1.26 investment 1.38 1.50 1.09 1.16 1.23 1.30 Free cash 0.00 0.00 0.00 0.42 0.46 0.42 0.91 0.87 0.41 0.43 flow (FCF) Return on equity 0.12 0.12 0.12 0.12 0.12 0.115 0.11 0.105 0.08 0.08 (ROE) Asset + 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 0.06 Earnings 0.12 0.12 0.12 0.09 0.04 0.04 0.01 -0.19 0.06 growth rate Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in ye 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? (Do not to calculations. Enter your answer in millions rounded to 2 decimal places.) & Answer is complete but not entirely correct. Present value S 23.36 million