Help Save & Exit Check Consider the table given below to answer the following question. 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 investment 1.34 1.51 1.26 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 growth rate 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 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 $ 26.16 million 9 e Help Save & Exit Check Consider the table given below to answer the following question. 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 investment 1.34 1.51 1.26 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 growth rate 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 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 $ 26.16 million 9 e