1 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 $1.6 million for this report, and I am not sure their analysis makes sense. Before we spend the $23 million on new equipment needed for this project , look it over and give me your opinion." You open the report and find the following estimates (in millions of dollars) 2 9 10 Sales revenue 35.000 35.000 35.000 35.000 - Cost of goods sold 21.000 21.000 21.000 21.000 =Gross profit 14.000 14.000 14.000 14.000 - General, sales, and administrative expenses 1.840 1.840 1.840 1.840 - Depreciation 2.300 2.300 2.300 2.300 = Net operating income 9.860 9.860 9.860 9.860 - Income tax 3.451 3.451 3.451 3.451