Help Save & Exit Su Check my wor Problem 12-16 Accounting measures of performance Use the cash flows and competitive spreads shown in the table below. Year 0 190 ($ millions) Year 1 Year 2 Years 3-10 1.15 1.15 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs 1.15 69.00 50.00 100 1.15 115.00 50.00 0 40 40 Cash flow -40 -21.00 25.00 NPV (atr - 88) - 0 Assume the dividend payout ratio each year is 100% a. Calculate the year-by-year book and economic profitability for investment in polyzone production. Assume straight-line depreciation over 10 years and a cost of capital of 8%. (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round Intermediate calculations. Enter your income answers in millions rounded to 2 decimal places and enter the rate of return as a percent rounded to 2 decimal places.) Period Book income (5 in Book rate of return millions) (9) Economic income is in millions) TOUTES UNIT Saved Help Save & Exits Check my we b-1. What is the economic rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Economic rate of return b-2. Now compute the steady-state book rate of return (ROI) for a mature company producing polyzone. Assume no growth and competitive spreads. (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ROI Help Save & Exit Su Check my wor Problem 12-16 Accounting measures of performance Use the cash flows and competitive spreads shown in the table below. Year 0 190 ($ millions) Year 1 Year 2 Years 3-10 1.15 1.15 Investment Production (millions of pounds per year) Spread ($ per pound) Net revenues Production costs Transport Other costs 1.15 69.00 50.00 100 1.15 115.00 50.00 0 40 40 Cash flow -40 -21.00 25.00 NPV (atr - 88) - 0 Assume the dividend payout ratio each year is 100% a. Calculate the year-by-year book and economic profitability for investment in polyzone production. Assume straight-line depreciation over 10 years and a cost of capital of 8%. (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round Intermediate calculations. Enter your income answers in millions rounded to 2 decimal places and enter the rate of return as a percent rounded to 2 decimal places.) Period Book income (5 in Book rate of return millions) (9) Economic income is in millions) TOUTES UNIT Saved Help Save & Exits Check my we b-1. What is the economic rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Economic rate of return b-2. Now compute the steady-state book rate of return (ROI) for a mature company producing polyzone. Assume no growth and competitive spreads. (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ROI