Please provide with all the free cash flows in years 0-10 for this problem.
X) Problem 9-17a Question Help 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 $1.7 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): Project Year Earnings Forecast ($000,000s) 6 Sales revenue 26.000 26.000 26.000 26.000 - Cost of goods sold 15.600 15.600 15.600 15.600 = Gross profit 10.400 10.400 10.400 10.400 - General, sales, and administrative expenses 2.320 2.320 2.320 2.320 - Depreciation 2.900 2.900 2.900 2.900 = Net operating income 5.1800 5.1800 5. 1800 5.1800 - Income tax 1.813Net income 36 36 3. 36 36 note that the consultants used straight line depreciation for the financial reporting purposes . Canada Revenue Agency allows a CC . A rate of 45% on the equipment for tax purposes . The re the new equipment that will be purchased today ( year ( ) , whi 0 ) , which is what the accounting department recommended for financial reporting purposes . Canada Revenue Agency port concludes that because the project will increase earnings by 53 367 million per year for ten years , the project is worth $33 67 million . You think back to your glory 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 w ject will require $11 million in working capital up front ( year O ) , which will be fully recovered in year 10 . Next , you see they have attributed 52 32 million of selling , general and administrative e *penses to the project , but you know that 51 15 million of this amount is overhead that will be incurred even if the project is not of accepted Finally , you know that accounting earnings are not the right thing to focus on ! Given the available information . what are the free cash flows in years O through 10 that should be used to evaluate the proposed project