just the answer is fine no work needed

2 You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing Your boss comes into your office drops a consultant's report on your desk and complains. "We owe these consultants 51.0 million for this report and I am not sure their analysis makes sense. Before we spend the 525 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 milions of dollars) (Click on the following icon in order to copy its contents into a spreadshot) Project Year Earnings Forecast (5 million) 1 9 10 Sales revenue 30.000 30.000 30.000 30.000 - Cost of goods sold 18.000 18.000 18.000 18.000 Gross profit 12.000 12.000 12 000 12.000 - Seling, general, and administrative expenses 2000 2.000 2000 2.000 -Depreciation 2500 2.500 2500 2500 Net operating income 7.500 7.500 7.500 7.500 -Income tax 1.5 1.5 1.5 1.5 = Net unlevered income 6.000 6.000 6.000 6.000 All of the estimates in the report sem correct. You note that the consultants used straight-line depreciation for the new equipment that will be purchased today (year o), which is what the accounting department recommended. The report concludes that because the project will increase earnings by $6.000 milion per year for ten years, the project is worth $00 milion You think back to your halcyon days in finance class and realize there is more work to be done! First, you note that the consultants have not factored in the fact that the project will require $10 milion in working capital upfront year), which will be fully recovered in year 10. Next, you see they have attributed $2 million of selling general and administrative expenses to the project but you know that $1 million of this amount is overhead that will be incurred even if the project is not accepted. Finally you know that accounting earrings are not the right thing to focus on! a. Given the available information, what are the free cash flows in years through 10 that should be used to evaluate the proposed project? b. If the cost of capital for this project is 14%, what is your estimate of the value of the new project? 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 free cash flow for year is $ milion (Round to three decimal places and enter a decrease in a negative number)