1. Construct a new version of Table 4.7, assuming that competition drives down profitability (on existing assets as well as new investment) to ll.5% in year 6, ll% 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?
2. A project has an initial outlay of $1,081. It has a single cash flow at the end of year 9 of $4,542. What is the internal rate of return (IRR) for the project?