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1 2 You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office,

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1 2 You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops a consultant's report on your desk and complains, "We owe these consultants $16 million for this report, and I am not sure their analysis makes sense. Before we spend the $29 milion on now equpment needed for this project, look it over and give me your opinion "You open the report and find the following estimates in milions of dollars 10 les revenue 27.000 27.000 27.000 27.000 - Cost of goods solo 10.200 16.200 16.200 10.200 Gross profit 10.800 10.800 10.800 10.800 - General, sols, and administrive expenses 2.320 2320 2320 2.320 -Depreciation 2900 2.900 2.000 2.000 Not operating income 5,500 5.500 5.580 5.580 -Income tax 1.983 1.953 1.963 1.959 Net income 3.627 3.627 3627 a. Given the available information, what are the free cash flows in years through 10 that should be used to evaluate the proposed project? The tree cash flow for year is milion. (Round to the decimal places, and enter a decrease as a negative number)

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