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find up till year 10 You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes
find up till year 10
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 $1.3 million for this report, and I am not sure their analysis makes sense. Before we spend the $29 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): 1 2 9 10 32.000 32.000 Sales revenue - Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income Income tax = Net income 19.200 12.800 2.320 2.900 7.580 2.653 4.927 32.000 19.200 12.800 2.320 2.900 7.580 2.653 4.927 19.200 12.800 2.320 2.900 7.580 2.653 4.927 32.000 19.200 12.800 2.320 2.900 7.580 2.653 4.927 a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? 0 The free cash flow for year 0 is $ million. (Round to three decimal places, and enter a decrease as a negative number.)Step by Step Solution
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