PLEASE WORK IN EXCEL AND SHOW FORMULAS, ESPECIALLY PART B

and complains, "We owe these consultants $1.8 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): (Click on the following icon in in order to copy its contents into a spreadsheet.) Farninna Fnreract (\$ millinn) 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 $15 million in working capital upfront (year 0 ), 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 earnings are not the right thing to focus on! 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? b. If the cost of capital for this proiect is 15%. what is vour estimate of the value of the new proiect