Yea are a manager at Northern Fibre, which is considering expanding its operations in synthetic bre ' manufacturing. Your boss ponies into your ofce, 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 $20 million on new equipment needed for this project. look it over and give me your opinion.' You open the report and nd the following estimates (In millions of dollars): 1 2 . . . 9 10 ' Sales revenue 27.000 27.000 27.000 27.000 - Cost of goods sold 16.200 16.200 16200 16.200 = Gross prot . 10.800 10.800 10.800 10.800 - General. sales, and administrative expenses 1.600 1.600 1.600 1.600 - Depreciation 2.000 2.000 2.000 2.000 ' = Net operating income 7.2000 7.2000 7.2000 7.2000 -E>- b. it the cost of capital for this project is 10%. what is your estimate of the value of the new project? Value of prvizijeet= $11 million (Round to three decimal places.)