((for every year)

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 $1.9 million for this report, and I am not sure their analysis makes sense. Before we spend the $25 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 Sales revenue 31.000 31.000 31.000 31.000 Cost of goods sold 18.600 18.600 18.600 18.600 -Gross profit 12.400 12.400 12.400 12.400 General, sales, and administrative expenses 2.000 2.000 2.000 2.000 Depreciation 2.500 2.500 2.500 2.500 = Net operating income 7.900 7.900 7.900 7.900 - Income tax 2.765 2.765 2.765 2.765 = Net income 5.135 5.135 5.135 5.135 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