Problem 9-17b 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 $1.1 million for this report, and I am not sure their analysis makes sense. Before we spend the $23 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 10 Sales revenue 32.000 32.000 32.000 32.000 - Cost of goods sold 19.200 19.200 19.200 19.200 = Gross profit 12.800 12.800 12.800 12.800 - General, sales, and administrative expenses 1.840 1.840 1.840 1.840 - Depreciation 2.300 2.300 2.300 2.300 = Net operating income 8.6600 8.6600 8.6600 8.6600 b. If the cost of capital for this project is 10%, what is your estimate of the value of the new project? Value of project = $ million (Round to three decimal places.)